When someone purchases a residential or commercial property, they generally have aspirations for their business or their family. Unfortunately, foreclosure can jeopardize that vision.
When businesses or individuals use financing to fund their purchase of property, the lenders in Massachusetts make loans in exchange for a mortgage on the property that usually includes the “Statutory Power of Sale” provision. A Statutory Power of Sale clause in a mortgage allows a lender to foreclosure on a property without court authorization or oversight. The mortgage protects the lender’s investment if the borrower does not make the mortgage loan payments.
Homeowners and business owners in Boston and across Massachusetts have to be especially cautious since the Massachusetts has very specific foreclosure laws. In Massachusetts, “legal” title to the property is held by the lender until the note is paid off. Moreover, compared to other states, the legal notice required prior to foreclosure in Massachusetts is very short.
What Homeowners Need to Know About Foreclosure Law
Foreclosure is a serious financial issue for many homeowners. In addition to causing homeowners to lose their homes, foreclosure can affect a homeowners’ credit rating and can subject homeowners to an action by the lender to collect any deficiency after the property is sold at the foreclosure auction. Due to the negative credit implications of foreclosure, persons and businesses who have lost a property by foreclosure may have a more difficult time qualifying for mortgage loan.
To defend against foreclosure it is important for a homeowner to understand their rights and options for retaining the property. Lenders often do not want to foreclose unless doing so is absolutely necessary because it can be difficult for a lender to sell a home and recover their investmen. Indeed, many foreclosed homes stay empty for years, meaning lenders are not making any money – they are losing money in the form of paying property taxes and other costs associated with property ownership. It can be advantageous to the lender as well is the borrower to allow the homeowner to remain in the home and to make different arrangements to pay down the mortgage loan.
Is Your Foreclosure Legal?
Massachusetts foreclosure law must be strictly followed by a lender in order to properly effectuate a foreclosure sale – especially the foreclosure of residential property. The lender must provide the borrower/homeowner with proper notice of the sale and also identify the current holder of their mortgage and note. In Massachusetts, only the lender that holds the mortgage and holds the note or one acting for the lawful note holder can foreclosure.
If you are being threatened with foreclosure, contact the experienced real estate foreclosure attorneys at Calabrese Law Associates in Boston, Massachusetts. Our real estate attorneys can review your mortgage, note, and related paperwork to identify whether you have a lawful basis for challenging the foreclosure.
There Is Help If You’re Facing Foreclosure
The real estate lawyers at Calabrese Law Associates have helped many homeowners and property owners save their commercial and residential properties from foreclosure. We review every mortgage agreement closely and negotiate with the lenders in an effort to find the best possible solution for our clients. If you’re worried about foreclosure on your property, contact our attorneys for a free consultation.
If your commercial or residential property is subject to foreclosure anywhere in Massachusetts, contact Calabrese Law Associates as soon as possible. The longer you wait, the fewer legal options you may have.