Foreclosures Faster in Non-Judicial Foreclosure States like Massachusetts, Says Report
A new report reveals that banks can usually foreclose faster with non-judicial foreclosure. The report is available here.
Without court oversight, with non-judicial foreclosure, it is much easier and quicker to foreclose. Prior to foreclosure, banks in Massachusetts have to do a few things before they can foreclose.
First, the bank has to send a notice of default. This is usually sent by mail.
Second, the bank sends a notice that the loan will be accelerated, usually within 150 days (five months) of the notice. In certain cases, banks also have to give homeowners an opportunity to apply for a loan modification. The 150 day timeline may be decreased to 90 days if the homeowner doesn’t apply.
Third, the bank will refer the foreclosure to a law firm that handles the scheduling of the sale. One of the things the foreclosure firm will do is file a request in the Land Court for a ruling that the homeowner is not a military member to ensure that there is clear title.
Fourth and finally, the bank schedules a sale. A foreclosure sale notice must be published for three consecutive weeks at least 21 days before the sale. Notice of the sale must also be provided to the homeowner at least two weeks before the sale.
A homeowner does have the right to reinstate the loan by paying the full amount due to catch up the payments up to the date of the sale. This does not frequently happen.
None of these steps require intervention of a court. Some advocates have argued that non-judicial foreclosure in Massachusetts violates the Constitutional right to due process of law. Due process requires notice and a court hearing before someone can be deprived of their property. Since there is no court oversight of a foreclosure, there is arguably no due process.
If you are concerned about being foreclosed on, it is important to determine where in the process your mortgage is so you can find out what options are available to you. Our office provides no-cost consultations to Massachusetts homeowners to help them evaluate the best course of action to save their homes.
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Culik Law is a Massachusetts Law Firm. The posts on Culik Law’s blog are not intended as legal advice. If you have questions about your particular situation, CONTACT CULIK LAW for a Free Consultation.