If you miss mortgage payments, the loan provider that lent you money might sell your home to gather the cash you owe. This is foreclosure.

When you took out your loan, you entered into 2 agreements with the bank.

- One contract is the "note." The note states you assure to pay back the cash you obtained.
- The other contract is the mortgage. The mortgage states you understand that the bank can take your home to pay the financial obligation if you do not pay back the cash you owe.
The bank must follow foreclosure laws before they can take your house. They must tell you about the auction and reveal it in the newspaper before they foreclose. There are laws that give you time to find a way to capture up on your missed payments or find another method to avoid foreclosure. If the bank does not follow the rules, they can not foreclose. It is essential to know:

- What the bank has to do,
- When it has to do these things, and
- How to know if the bank is following the rules.
Mortgage Holder

Mortgage Holder

The mortgage holder can foreclose on your house if you do not make your payments. The mortgage holder can be a bank, a business, a trust, or an individual that owns the mortgage.

Noteholder

The "noteholder" is the business that owns the right to gather your payments.

Servicer

The company that sends you notices and expenses is normally the "Servicer" for the mortgage holder. The mortgage holder works with a servicer to gather payments, manage escrow payments, process loan adjustments, and communicate with you about the loan.

Sometimes the mortgage holder, noteholder and servicer are all the very same company. Sometimes they are three various business. In Massachusetts, a company that wants to foreclose must be both the mortgage holder, and either the noteholder, or an authorized representative of the noteholder.

When you signed your mortgage, you accepted make all your payments on time. If you miss payments you are in "default," or you "default on your mortgage." Paragraph 22 of a lot of mortgages (or paragraph 26 for mortgages signed after 2021) is the place that states you give the bank the right to foreclose if you default on your mortgage. Look at paragraph 22 of your mortgage to see if it states you agree the bank can foreclose if you default or miss payments.

In Massachusetts, the bank does not need to go to court to foreclose on your home. The bank, or mortgage holder, can hold an auction to foreclose on your home. The bank reveals that it is offering your home on a specific date. The bank can sell your home to the individual who offers the most cash.

When banks foreclose on a residential or commercial property without going to court, this is called the workout of the "power of sale" authorized by the mortgage. But to utilize the power of sale, banks should follow all the regards to the mortgage and obey state foreclosure laws.

If you fall behind on your mortgage payments, the bank can only foreclose if they provide you the best notices, tape-record the notices and release the auction in the newspaper. They should:

Give you a Right to Cure Notice that states you have a number of days to capture up on your payments. If you overtake the overdue mortgage payments, they will not foreclose.
Give you a Right to Modify Notice. Sometimes the bank should notify you that you have a right to ask the bank to change the method you pay back your loan. Changing the method you pay back your loan is a modification. If you deserve to ask for a modification and your earnings is low enough, the bank might need to give you an adjustment.
Give you a Velocity Notice that tells you the total of your loan is due and if you do not pay it, the bank will foreclose.
Give you a Servicemembers Civil Relief Act Complaint. Banks should give this notice to everyone they are beginning to foreclose on. If you are in active military responsibility, you can stop a foreclosure by answering this grievance.
Record 2 affidavits at the Registry of Deeds. One affidavit says the bank owns, or controls the note and the mortgage. The other affidavit says the bank followed the law under G.L. 244, s. 35B and provided you the Right to Modify Notice.
Publish the auction in the newspaper. For 3 weeks in a row, the bank must release the date and time of the auction in the newspaper.
Give you a that tells you the date of the foreclosure auction.
Once the bank has followed all the actions after you miss your payments, they can hold an auction and sell your home to the buyer who provides the most money.

The bank will auction your home on the date and time in the notifications in the paper and the letter they sent to you. If the auction was delayed by pronouncement the auction will happen on the date it was revealed.

If there is a foreclosure auction set up within the next 7 days, the Massachusetts Division of Banks may be able to assist you get a 60 day postponement.

The auctioneer and an agent of the bank will pertain to your residential or commercial property. The auction does not need to take location on your residential or commercial property. It can be near your residential or commercial property.

For both of these foreclosures, the individual who runs the auction should be a certified auctioneer. The highest bidder wins the auction. The bank is allowed to bid at the auction. The bank frequently wins the residential or commercial property.

The buyer generally has thirty days to pay the total that they bid, and sign the documentation. Once all the paperwork is signed, the bank signs the deed and offers it to the new owner.

If the greatest bidder does not pay the full quantity within the one month, they lose their deposit. The 2nd highest bidder can take the residential or commercial property.

On the day of the auction, you might see an individual who is representing the bank step onto your residential or commercial property. They do this to ensure that if something goes wrong with the foreclosure by auction they can still take your home a various method. This kind of foreclosure is "foreclosure by entry." The bank representative does not need to enter your home. They can just step onto your land, anywhere.

Within one month after the sale, the bank that sold your residential or commercial property must tape-record a copy of:

- the notification of sale, and
- an affidavit that the foreclosure sale was performed correctly.
The Registry of Deeds makes this info available online.

After the foreclosure, the new owner should send you a notification that informs you who won the auction. The winner of the auction is the new owner of your residential or commercial property.

You may not get the notice immediately. It could take a couple of weeks.

If a bank is the brand-new owner, they will have a residential or commercial property manager. You will get a notice that tells you the name of the residential or commercial property supervisor. Contact the residential or commercial property manager if there are issues with your home.

You can likewise discover who the new owner of your residential or commercial property is by taking a look at the deed. See the Registry of Deeds for the town where the residential or commercial property is situated.

If the sale of your home did not bring in sufficient to cover the overall amount you owe the bank, you still owe the bank cash. The cash you owe is a "deficiency."

The bank can sue you for the deficiency. But they must have given you the appropriate notification before the auction. The notification should have said they planned to "look for a shortage" after the sale.

If you can not manage your mortgage you may have to provide up your home. But you might be able to have more control over how you give it up and prevent foreclosure.

Or, you might be able to keep your home:

- Contact the bank and ask if you can work out a plan to keep your home.
- Get in touch with A HUD-approved housing therapy company to find out what you can do.
- Contact the Massachusetts Attorney General's Consumer Advocacy and Response Division to get more information about your rights.
- Try to get legal aid.
Bankruptcy may be choice for stopping a foreclosure sale. A Chapter 7 bankruptcy may only postpone foreclosure. However, if you can make continuous payments once again, a Chapter 13 personal bankruptcy can allow you up to 5 years to pay back an arrearage. Speak to an attorney.

Foreclosures are complicated. Try to get legal help.
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You might be able to get complimentary legal aid from your local legal aid program.

If you do not qualify for legal help, attempt a lawyer recommendation service. If your earnings is low enough, you may get approved for their decreased cost referral.
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