Getting Your Home Back After a Massachusetts Property Tax Sale

In most situations, Massachusetts law provides homeowners with a term of redemption after a tax auction or government take.

If you do not pay your property taxes on time, the amount owed becomes a lien on your house. This form of lien nearly often takes precedence over other types of liens, including mortgages. When taxes are not paid, the taxing authority will either sell the lien (and if you do not pay the past-due sum to the lien purchaser, that party may foreclose or use another way to get title to the house) or sell the property itself in a tax sale. In certain areas, however, no auction is made; instead, the taxation body enforces its lien by acquiring ownership to the residence. The taxation body is then required by state law to dispose of the property, typically by selling it. Before conducting a sale, the taxation authority in some countries utilizes a foreclosure procedure.

Homeowners in Massachusetts who fail to pay their property taxes may lose their house as a result of a tax auction or a “taking” by the city or town. Fortunately, you’ll most likely be given a “redemption period” following the sale or taking to pay off any outstanding debts before losing title of your home. During this period, you have the legal right to repay the obligation and regain your property.

How Do Massachusetts Tax Sales Work?

When a homeowner in Massachusetts fails to pay his or her property taxes, the tax collector may sell the house to fulfill the tax obligation. Alternatively, rather than holding a sale, the city or municipality may “take” the property.

In order to obtain free and clear possession of property, the purchaser from the tax auction, or the city or town in the event of a taking, must foreclose the homeowner’s right to redeem. (See Mass. Gen. Laws chs. 60, 64).

In Massachusetts, how long is the redemption period after a tax sale or taking?

Most residents in Massachusetts have a six-month redemption period following the sale or taking to pay off the tax obligation and retain the house. (See Mass. Gen. Laws chs. 60, 65).

After the redemption term has expired, the purchaser (or city or municipality) may petition the land court to have the right to redeem revoked. The purchaser obtains possession of the property after the foreclosure is completed.

However, in certain cases, you do not get a redemption period.

The foreclosure process may begin sooner in certain circumstances. A city or municipality may initiate foreclosure proceedings right away if:

The residence has been abandoned (that is, you have permanently moved out and the property fits specific Massachusetts law conditions), or the redemption amount exceeds the property’s assessed value. (See Mass. Gen. Laws chs. 60, 65).

In addition, a petition for the foreclosure of all redemption rights may be submitted at any time after the record owner’s written approval. (See Mass. Gen. Laws chs. 60, 65).

When Does Your Redeemable Right Expire in Massachusetts?

According to Massachusetts law, you may redeem your house until:

If you make an offer to redeem in a response to the petition, the purchaser, city, or town files the petition for foreclosure or the date established by the land court. (See Mass. Gen. Laws chs. 60, 62, and 68).

If you miss the time for responding to the petition, the court may allow you to redeem until it issues a ruling terminating your right to redemption. If you wish to redeem your house after the foreclosure process has begun, you need seek the assistance of an attorney.

How Much Money Will You Need to Redeem Your Massachusetts Property?

To redeem the property, you must typically pay the initial amount owed, plus 16% interest and any costs. (Mass. General Laws chs. 60, 62). However, if the foreclosure has already begun and the court allows you to redeem, you must additionally pay court expenses and lawyers’ fees. 68 of the Massachusetts General Laws.

Getting a Foreclosure Judgment Overturned

Within one year, you may submit a petition requesting the court to rescind its decision (or 90 days if the property was abandoned or the redemption amount exceeded the assessed value of the parcel). 69A of the Massachusetts General Laws. However, decisions are seldom vacated, and there are few justifications for doing so. Speak with an attorney if you want to know more about vacating a judgment.