Approximate Transcription Below:
My name is Logan Weinkauf and I’m a Massachusetts attorney. I help people keep their homes out of foreclosure. If you’re behind on your mortgage, click the link on the bottom of this video to get in touch with me for a free consultation. We can talk about your individual facts and circumstances and put together a plan to help.
In Massachusetts, foreclosure starts with a default. The most common default are missed payments. Payments are due on the first of each month and have a 15 day grace period. Less common defaults include lapses of home insurance. Banks require all borrowers to keep home insurance on their properties. So if they receive a notice of cancellation or information that a policy was not renewed, that’s a default.
Another type of default would be transfer of title. So borrowers can’t transfer their ownership interest to a non borrower like an LLC or a corporation without consent of the lender. In a very uncommon default would be if the lender found out that a borrower had hazardous materials on their property
At 30 days late. The loan is now in default, and this is referred to as the pre foreclosure period. At this point, the bank is going to start their foreclosure efforts by hiring a law firm to represent them. The borrower can expect phone calls and letters. The borrower can also expect their credit score to take a hit..
Your other creditors are likely to see this, so they may cut off, credit cards or access to personal loans, and then increase the interest rate on any balance that you have. At some point, the bank will provide the borrower with a notice of right to cure.
The notice gives the borrower a dollar amount that’s required to bring the loan current, along with a date by which that payment must be made. If the payment is not made by this date, the loan is accelerated. This means the entire amount of the loan is due not just the missed payments. The amount of time to cure depends on the mortgage loan terms.
In Massachusetts. If a borrower made a small down payment, or if the loan had a low introductory interest period, the bank will send the borrower paperwork to apply for a loan modification. If the borrower submits an application for loan modification, the time to cure is 150 days. If the borrower does not submit a loan modification, the time to cure is 90 days.
Once the deadline of the notice to cure passes, the bank will file a complaint and land court for judgment under the service member’s Civil Relief Act. This law protects active duty military. So if you’re not in the military, you do not need to do anything. Once the loan is accelerated and the bank has land court judgment, the bank is going to now schedule a foreclosure auction. The bank must publish a notice of this auction for three consecutive weeks In the local newspaper, the bank must provide notice to the homeowner of the auction date at least 14 days in advance. On the day of foreclosure, an auctioneer will come outside the home to conduct an auction. The home will be sold to the highest bidder. The bidders and the auctioneer are not allowed inside your home. They must stay outside after the foreclosure. The winning bidder will contact the borrower about leaving the property. You might be able to negotiate 30 or 60 days to get yourself organized and moved, but if not, the buyer will institute the eviction process in your local housing court.
Foreclosure can be stopped. If you’re behind on mortgage payments and you’re receiving letters from your bank or their law firm, it’s very important that you contact a lawyer to discuss all of your options.
Bankruptcy, stops, foreclosure at any point up to the auction, including even the day of state court .
Options such as a temporary injunction might be available depending on your individual circumstances, but the most important thing you can do is to talk to a lawyer about your individual facts and circumstances and put together a plan to help you.
Thank you, and I hoped this helped.