Homestead Realty Group

Foreclosure Information

What is a Foreclosure?

When a lender attempts to recover monies owed to them based on a promissory note, by taking the property for default of payment and selling the property. Simply put, the consumer has borrowed money from a bank or mortgage company to either purchase or refinance a home or perhaps open a line of credit against the property, and in exchange for lending the money the consumer made a promise to pay it back, and if unable to pay back, the lender could foreclose and take title to the property.

The Process

* Consumer misses mortgage payments.

* In some cases, as of 2007, in Massachusetts, lenders are required to send a 90-day notice informing consumer that they have 90 days to bring loan current.

* Bank sends customer a Notice of Default, with the amount needed to bring mortgage payment current.

* Customer fails to bring mortgage payments current.

* Lender makes attempts to contact customer by phone and in writing to resolve issue.

* No arrangements are agreed upon and customer remains delinquent.

* Bank issues demand for payment of note in full, based on the acceleration clause. Once customer has received a full payment demand, they should contact an attorney if they have not done so already.


Foreclosure Timeline

Depending on the timing of the various notices required, it can take between 75-90 days to effectuate an uncontested non-judicial foreclosure. Once the lender has taken the property, the occupancies will then be evicted and it will go to auction. If not sold at auction it will go into the banks REO (Real Estate Owed) portfolio, and the lender will hire a listing agent to sell the property on their behalf.