Facing foreclosure on a home, you worked hard to purchase is a devastating prospect, no matter where you live. If you’re in Massachusetts, there are a few essential things to know about the foreclosure process and a ton of agencies and organizations that want to help you out of it.
In Massachusetts, your lender must:
- Give you 90 days to get caught up on your mortgage before starting to foreclose on the property. This is called ‘reinstatement’ and is by far the most desirable outcome. If you can pay what you owe and become current again, you ‘cure’ the situation. Keep making your payments, and you’ll be in clear water.
- Notify the borrower that they have the right to seek a loan modification. When requesting a loan modification, it’s a good idea to show that you’ve sought assistance with your other financial obligations. Massachusetts has programs for homeowners to receive help with their utility costs in times of need. Figure out the maximum amount you can pay. If you and your loan servicer can agree, you want to make sure that it’s an agreement you can keep.
- Prove that they own the loan by showing that the property is correctly assigned to them in the local register of deeds. If they can’t do this, they can’t move forward, so investigating the record of deeds is one thing you’ll want to make sure to do. Sloppy records may make your loan unenforceable in Massachusetts.
MassHousing: This incredible agency offers refinancing to qualifying buyers. Their product is a fixed-rate mortgage and comes with built-in insurance in case you lose your job. They do receive a high volume of calls but commit to acknowledging your inquiry within three days. At that time, they will give you a date of expected resolution on your inquiry. There is an escalation hotline available.
BlueHub Capital: Similar to MassHousing, this lender buys properties on the day they are foreclosed, then sells them back to the homeowner (often on the same day!), but this time at a price they can afford. A new, affordable 30-year mortgage begins.
NeighborWorks: This housing-focused not-for-profit is established all over the country. They give grants to agencies that work directly with consumers intending to establish or keep everyone in safe, affordable housing. You can use their website to search for an agency near you.
The Office of Consumer Affairs and Business Protection has created a detailed rundown of the foreclosure process, as well as a site with tips on how to avoid foreclosure in the first place. Both of these guides are written and understandable, in large font. After squinting at the fine print of your mortgage papers, it feels like a relief and demystifies the whole process a lot.
Finally, your last resort is the Department of Banks. If you are within seven days of foreclosure, you can contact the DOB and ask for a 60-day pause on the foreclosure process. This is only available once but could give you the time you need to save your home.