Can I get my house back if I lose it to foreclosure in Massachusetts?

Determine if you may redeem (repurchase) your repossessed house after the foreclosure sale.

Question

In Massachusetts, my wife and I reside in a foreclosed home. The sale is almost approaching. Whether the foreclosure goes through, I’d want to know if we can get the home back. According to a friend, following a foreclosure, the homeowner has the right to buy or “redeem” the property in several areas.
Answer

After the foreclosure sale in certain Massachusetts foreclosure situations, the homeowner has the opportunity to redeem the house. However, if your foreclosure is typical in Massachusetts, you will not be able to reclaim your house.

However, you have until the foreclosure auction to pay up the whole amount of the overdue debt, which will halt the foreclosure. Paying down the debt prior to the sale is frequently referred to as “redeeming” the house.

When You Can Redeem in a Nonjudicial Foreclosure

In Massachusetts, the vast majority of foreclosures are nonjudicial. After a nonjudicial foreclosure, you do not have the right to redeem in Massachusetts. (Mass. Gen. Laws, Chapters 244, 18; 183, 21). However, you do have a “equitable right of redemption” before the transaction takes place. As a result, you may redeem the house before the sale by paying down the whole loan amount.

If the foreclosure is nonjudicial—and most are—and you do not redeem the property or take other action to halt the foreclosure before the sale, you will not have another chance to preserve the house.

When You Can Redeem in a Judicial Foreclosure or Possession Foreclosure

If your foreclosure is judicial or by possession, which is an uncommon occurrence in Massachusetts, you will have the chance to redeem the property after the sale. (Mass. Gen. Laws ch. 244, par. 18).

To redeem, you must pay the whole mortgage balance, including interest, lawyers’ fees, and charges. (Mass. Gen. Laws, Chapter 244, Section 19).

Take Action Prior to the Foreclosure Sale to Save the Home

Assuming you can’t afford to redeem the house before the sale (or after the foreclosure, if you have the right to redeem), you have a few additional choices.

Paying down any past-due sums in order to restart the loan. You have a 90-day right to reinstate under Massachusetts law before foreclosure begins, and most mortgage arrangements enable reinstatement by a certain period after foreclosure begins. Examine your loan documentation to check whether you have the right to reinstate and what the deadline is.
Make an arrangement with your lender to maintain the house, such as a mortgage modification, forbearance agreement, or repayment plan.

Investigate foreclosure options as soon as feasible.

Where Can I Find Massachusetts’ Redemption Laws?

Part II, Chapter 183, and Part III, Chapter 244 of the Massachusetts General Laws include the provisions that address the right to redeem. Statutes change, so double-checking is usually a good idea. The way courts and other organizations interpret and implement the law might also shift. Some restrictions may even differ across states. These are just a few of the reasons why you should visit an attorney if you are facing foreclosure.