Massachusetts allows for both judicial and non-judicial foreclosure processes. However, for majority of foreclosure proceedings non-judicial method is preferred. The mortgage usually contains a provision called a power of sale clause when initially signed. It contains a provision called a power of sale clause which can allow the lender to foreclose the property in case of default by the borrower. To effectuate the sale of the property, mostly through auction, an attorney acts as a representative of the lender. Lender is required to send a 90-day demand letter to the defaulting borrower before initiating foreclosure proceedings. The foreclosure process in Massachusetts takes about 4-6 months including the Land Court Soldiers’ and Sailors’ judgment.

Notice of the foreclosure sale should be served on borrower by registered or certified mail by sender minimum fourteen days before the foreclosure sale date. Moreover, the notice must be published once a week in a newspaper of general circulation in the county in which the property to be foreclosed is located for three weeks. The first publication is should be at least twenty-one days before the sale. The property sale happens at a public auction as per time, date and place mentioned in the notice. Although not very common in case of Massachusetts, the lenders can also go to court for a judicial foreclosure proceeding in which the court issues final judgment of foreclosure.

In Massachusetts, a deficiency judgment cannot be obtained if property in foreclosure is sold at a public auction sale for a lesser amount than loan outstanding for which the underlying property was mortgaged unless certain notice requirements are met by the lender. An attempt to collect a deficiency by the lender can potentially open the door to a redemption action in a judicial foreclosure. Moreover, the borrower has no rights of redemption.