Founding Attorney
Logan Weinkauf is a Massachusetts attorney with extensive experience in foreclosure prevention. He helps individuals keep their homes when they fall behind on mortgage payments. For those in need of assistance, we offer a free consultation to discuss your specific situation and create a personalized plan.
In this post, we hope to shed light on the stressful and overwhelming foreclosure process.
Understanding Foreclosure in Massachusetts
Foreclosure in Massachusetts begins with a default on your mortgage. Here’s what you need to know:
Most Common Defaults
- Missed payments: Payments are typically due on the first of each month, and a 15-day grace period is usually provided.
Less Common Defaults
- Lapse in Home Insurance: Banks require continuous home insurance. Cancellation or non-renewal can lead to default.
- Transfer of Title: Transferring ownership to a non-borrower (like an LLC or corporation) without the lender’s consent can result in default.
- Hazardous Materials: Rarely, having dangerous materials on your property can also lead to default.
What Happens When You’re 30 Days Late
When you’re 30 days late on a mortgage payment, your loan is considered in default, and this triggers the pre-foreclosure period. Here’s what to expect:
- Bank Actions: The bank hires a law firm to initiate foreclosure efforts. Expect phone calls and letters from the bank. At this time, your credit score will likely drop.
- Impact on Credit: Other creditors may see this and could take actions such as cutting off credit cards, limiting access to personal loans, and increasing interest rates on existing balances.
Notice of Right to Cure
At some point, the bank will send you a Notice of Right to Cure, which includes:
- The dollar amount required to bring the loan current.
- A deadline by which the payment must be made.
If you fail to make the payment by the given deadline, the loan will be accelerated -– meaning the entire balance of the loan becomes due, not just the missed payments.
Cure Period:
- If you made a small down payment or had a low introductory interest rate, you might receive paperwork to apply for a loan modification.
- If you apply for a loan modification, the cure period is extended to 150 days.
- If you do not apply, the cure period is 90 days.
What Happens After the Cure Period
Once the Notice of Right to Cure deadline passes, the following steps occur:
Bank Files a Complaint
- The bank will file a complaint in Land Court under the Servicemembers Civil Relief Act.
- This law protects active-duty military members, so if you’re not in the military, you don’t need to take any action.
Foreclosure Auction
- The bank will schedule a foreclosure auction and must: Publish a notice in the local newspaper for three consecutive weeks and provide you with at least 14 days’ notice of the auction date.
Auction Day
- An auctioneer will conduct the auction outside your home.
- The home will be sold to the highest bidder.
- Bidders and the auctioneer are not allowed inside your home.
Post-Foreclosure
- The winning bidder will contact you about vacating the property.
- You may be able to negotiate 30 to 60 days to move out.
- If not, the buyer may start the eviction process in your local housing court.
How to Stop Foreclosure
Foreclosure can be stopped, even up to the day of the auction. Here are your options:
- Bankruptcy: Filing for bankruptcy halts foreclosure proceedings at any point, including the auction day.
- Temporary Injunction: You might be eligible for a temporary injunction depending on your circumstances.
The most important step is to consult a lawyer to discuss your individual situation and explore all available options.
Your Trusted Massachusetts Foreclosure Attorney
Foreclosure can be a daunting and overwhelming process, but it’s important to remember that there are steps you can take to protect your home. By understanding your rights and the foreclosure timeline in Massachusetts, you can better navigate this challenging situation.
Logan Weinkauf is dedicated to helping homeowners in Massachusetts stay in their homes and avoid foreclosure. If you’re facing financial difficulties and are concerned about losing your home, don’t wait until it’s too late. Contact us for a free consultation, and together, you can develop a strategy that fits your unique circumstances. Protect your home and your future by taking action now.