The Foreclosure Process in Massachusetts: An Overview

The Foreclosure Process in Massachusetts: An Overview

Foreclosures are rare in high-end markets like Newton or Wellesley, but understanding the process is vital for investors looking for distressed opportunities.

A Non-Judicial State

Massachusetts is primarily a 'non-judicial' foreclosure state. This means the bank does not have to go to court to foreclose, provided the mortgage has a 'Power of Sale' clause.

The Timeline

1. Notice of Default: Sent after several missed payments.
2. Right to Cure: A 90-day window for the homeowner to pay the arrears.
3. Auction: The property is sold on the front steps of the home or at a local venue.

Buying at Auction

Auction properties are 'As-Is'. You usually cannot inspect them beforehand and must pay in cash. It is high-risk, high-reward.