How to Stop a Foreclosure in Massachusetts

Published on June 28th, 2023

Facing foreclosure in Massachusetts can be a daunting and stressful experience. However, understanding your options and taking action promptly can make all the difference in saving your home and avoiding long-term repercussions. In this comprehensive guide, we will explore various strategies on how to stop a foreclosure in Massachusetts and regain control of your financial future.

Stopping Foreclosure Takeaways

• Alternative solutions exist to help Massachusetts homeowners avoid foreclosure.

• Seek professional help from HUD-approved housing counselors and foreclosure defense attorneys for guidance.

• Beware of potential scams and report them to relevant authorities.

Alternative Solutions to Stop Foreclosure in Massachusetts

Before resorting to legal measures, it’s worth considering some alternative solutions that may help you avoid foreclosure in Massachusetts. These options can provide relief for homeowners struggling with mortgage payments and allow them to get back on their feet financially.

Let’s examine three potential alternatives: selling your house to a local investor, opting for a short sale, and signing a deed-in-lieu of foreclosure.

Sell Your House Cash To a Local Investor

Selling your house for cash to a local investor can be a viable solution to avoid foreclosure and quickly pay off any outstanding mortgage debt. By doing so, you can stop the foreclosure process in its tracks and move forward without the burden of a looming foreclosure sale.

However, it’s essential to research and choose reputable foreclosure prevention companies or investors to work with, as not all investors have your best interests at heart. Remember, while this option can provide a prompt closing and a convenient sale, you may not receive full market value for your home.

It’s advisable to consult a HUD-approved housing counselor to explore other options.

Short Sale

A short sale is when you sell your real estate for less than the amount you owe on it, and the proceeds of the sale are paid to the lender, who may then forgive part or all of the remaining balance. A short sale can assist the homeowner in avoiding foreclosure, which can have a detrimental effect on their credit score. Additionally, it can help the homeowner evade the expenses associated with a foreclosure, such as lawyer fees and court costs.

However, a short sale can adversely affect the homeowner’s credit rating, and the homeowner may still be liable for any outstanding taxes or other obligations related to the property. It’s essential to weigh the pros and cons of a short sale carefully before proceeding.

Deed-in-Lieu of Foreclosure

A deed-in-lieu of foreclosure is a legal process wherein a homeowner consents to transfer ownership of their property to their mortgage lender in exchange for exoneration from the mortgage debt. This option can help you avoid the lengthy and costly foreclosure process, but it’s crucial to ask your lender if they will forgo any deficiency, which is the discrepancy between your home’s value and the amount still owed on the mortgage.

The ramifications of foreclosure may include a negative effect on your credit score, a possibility of a deficiency judgment, and the likelihood of a tax liability.

As with any foreclosure alternative, it’s prudent to seek foreclosure avoidance counseling from a HUD-approved housing counselor to explore this option further.

Understanding Foreclosure in Massachusetts

Foreclosure proceedings are the legal procedure wherein banks and other mortgage lenders try to get back what they lent. It is done when borrowers fail to make payments on their mortgage loans. When a home is foreclosed on, the homeowner is required to vacate the premises, and the foreclosure is documented on their credit report, significantly influencing their credit score.



Understanding the foreclosure process in Massachusetts can help you better navigate your options and take the necessary steps to protect your home and financial future.

Judicial Foreclosure Process

In Massachusetts, the judicial foreclosure process involves a court proceeding wherein the lender must file a notice of impending lawsuit with the courts. The court must approve the foreclosure, and the foreclosure sale must take place 20 to 35 days after the judgment date, barring any exceptions stated in the court order. The duration of the process can fluctuate, but it typically spans 8 to 14 months.

Navigating the judicial foreclosure process can be complex, and it’s essential to stay informed and seek professional guidance when necessary.

Non-Judicial Foreclosure Process

While non-judicial foreclosure occurs without court involvement in some states, Massachusetts is a judicial foreclosure state. This means that a bank or HOA must receive approval from a judge to foreclose on a home, and the foreclosure process generally takes approximately 180 to 200 days to complete.

Although non-judicial foreclosure is not applicable in Massachusetts, it’s crucial to understand the nuances of your state’s foreclosure laws and processes to ensure you can make informed decisions and protect your rights as a homeowner.

Immediate Actions to Prevent Foreclosure

Taking immediate action is crucial when faced with the threat of foreclosure. The sooner you act, the more options you may have available to prevent the loss of your home.

In this section, we will discuss two critical steps to take when facing foreclosure: communicating with your mortgage lender and reviewing available mortgage relief options.

Communicate with Your Mortgage Lender

Contact your mortgage lender as soon as possible to discuss your financial situation and explore potential solutions to avoid foreclosure. Establishing communication with your mortgage company can create a personal relationship, provide insight into your options, and foster trust.

It’s essential to be honest and transparent about your financial situation when speaking with your lender. They may be able to offer you loan modifications, forbearance agreements, or repayment plans that can help you get back on track with your mortgage payments and avoid foreclosure.

Review Your Mortgage Relief Options

Mortgage relief options such as loan modifications, forbearance, or repayment plans can provide the necessary assistance to help you avoid foreclosure. For example, a loan modification may involve extending the duration of the loan, resulting in lower monthly payments and a more manageable mortgage payment.

Forbearance, on the other hand, is an agreement between the lender and the borrower to temporarily suspend or reduce mortgage payments for a predetermined period of time. Repayment plans involve working with your lender to make up for missed payments over a certain period, allowing you to catch up on your mortgage and halt the foreclosure process.

It’s essential to evaluate your mortgage relief options carefully and choose the one that best suits your financial situation.

Legal Strategies for Stopping Foreclosure in Massachusetts

If alternative solutions and immediate actions have not resolved your foreclosure situation, legal strategies may be necessary to stop the foreclosure process.



In this section, we will explore two legal strategies for stopping foreclosure in Massachusetts: filing bankruptcy and contesting the foreclosure in court.

Filing Bankruptcy

Filing bankruptcy can temporarily halt the foreclosure process, giving you time to reorganize your finances and potentially save your home. There are two types of bankruptcy: Chapter 7 bankruptcy, which involves the liquidation of one’s debts, and Chapter 13 bankruptcy, which restructures your debts so you can pay them off over a period of three to five years.

However, filing bankruptcy has its own consequences, and if the debt cannot be paid off after bankruptcy is discharged, the foreclosure process will continue. It’s important to consult with a bankruptcy attorney to determine if this is the right option for your situation.

Contesting the Foreclosure

Contesting the foreclosure involves filing a lawsuit to challenge the lender’s right to foreclose, but requires proving your case in court. Initiating a lawsuit can potentially delay or prevent the foreclosure process, but can also be costly and time-consuming.

It’s crucial to weigh the pros and cons of contesting the foreclosure and seek the guidance of a foreclosure defense attorney to help you navigate the legal aspects of foreclosure.

Seeking Professional Help

Seeking professional help can provide valuable guidance and support when facing foreclosure in Massachusetts. In this section, we will discuss two sources of professional help: HUD-approved housing counselors and foreclosure defense attorneys.

HUD-approved housing counselors are trained to provide advice and assistance to homeowners facing foreclosure. They can help homeowners understand their rights and options, and provide guidance on how to avoid them.

HUD-Approved Housing Counselors

HUD-approved housing counselors offer free or low-cost advice on foreclosure prevention and can help you understand your options. These counselors can provide you with the information and services offered by foreclosure prevention companies, but without the cost.



To find a HUD-approved housing counselor, you can search online or contact the HUD Homeownership Preservation Office at (800) 569-4287.

Foreclosure Defense Attorneys

Foreclosure defense attorneys can help you navigate the legal aspects of foreclosure, including contesting the foreclosure or filing bankruptcy. They can provide legal advice and assistance in negotiating with lenders and filing relevant legal documents.

While hiring a foreclosure defense attorney can be costly, their expertise can prove invaluable in helping you protect your home and financial future.

Beware of Foreclosure Scams

In your quest to stop foreclosure, it’s essential to beware of scams that prey on desperate homeowners. These scams can leave you in a worse situation and result in the loss of your home or finances.



In this section, we will discuss common foreclosure scams and red flags to watch out for.

Common Scams and Red Flags

Common foreclosure scams include foreclosure rescue schemes, fake government programs, and advance fee scams. Be cautious of guarantees, upfront fees, or pressure to sign documents, as these are common warning signs of scams.

Remember, if something seems too good to be true, it probably is. Always consult with a HUD-approved housing counselor or foreclosure defense attorney before making any decisions that could impact your home and financial future.

Reporting Foreclosure Scams

If you suspect a foreclosure scam, it’s important to report it to your state attorney general’s office, the Federal Trade Commission, or the Consumer Financial Protection Bureau. By reporting scams, you can help protect others from falling victim to these predatory practices and ensure that the scammers are held accountable.

Remember, knowledge is power, and staying informed about foreclosure scams can help you safeguard your home and finances.

Summary

In conclusion, stopping foreclosure in Massachusetts requires understanding your options, taking immediate action, and seeking professional help when necessary. By exploring alternative solutions, communicating with your lender, and considering legal strategies, you can regain control of your financial future and protect your home. Remember, knowledge is power, and staying informed about foreclosure laws, processes, and scams can make all the difference in saving your home and safeguarding your financial well-being.

Frequently Asked Questions

How long does it take to foreclose on a property in Massachusetts?

The foreclosure process in Massachusetts can take anywhere from 180 to 200 days. This timeframe includes the time it takes for the lender to obtain an order to foreclose by suing the borrower and any delays due to the court schedule or if the borrower contests the foreclosure or files for bankruptcy.

The lender must also provide the borrower with a notice of default and a notice of sale. The notice of default must be sent at least 45 days before the date of the default.

What is a motion to dismiss foreclosure in Massachusetts?

A motion to dismiss foreclosure is a request made to a court in the State of Massachusetts which allows homeowners to challenge a foreclosure lawsuit and potentially end it, should the plaintiff fail to meet their legal obligations.

If accepted, this motion can be used to stop the foreclosure process entirely.

How many missed payments before foreclosure in Massachusetts?

In Massachusetts, foreclosure proceedings will begin after missing payments for 120 days. It is important to take quick action to avoid further legal repercussions due to a missed payment.

Can a foreclosure be stopped in Massachusetts?

Yes, a foreclosure can be stopped in Massachusetts. There are certain rights and options available to homeowners that may allow them to avoid the foreclosure process, including the right of redemption, reinstating the loan, or filing for bankruptcy.

Taking action as soon as possible is key in order to best preserve your rights.

What are some alternative solutions to prevent foreclosure in Massachusetts?

It may be possible to prevent foreclosure in Massachusetts by renegotiating the loan terms with your lender, obtaining a reverse mortgage, or applying for the Massachusetts Hardest Hit Fund.

These are all options that could potentially help save your home from foreclosure.