Does Massachusetts have an anti-deficiency statute like California?

Full question:

You say that California has an anti-deficiency statute. A comment from a 'Massachusets user' says ' I can sleep better tonight.' But, does Mass. have the anti-def like Calif??

  • Category: Real Property
  • Subcategory: Foreclosure
  • Date:
  • State: Arizona

Answer:

In Massachusetts, borrowers generally cannot be held liable for a deficiency judgment if their property is sold at a public foreclosure sale for less than the amount owed on the mortgage. However, this is contingent upon meeting specific notice requirements.

To pursue a deficiency, the lender must send a statutory notice of intention to foreclose at least twenty-one days before the sale. Additionally, an affidavit confirming the sale must be recorded within thirty days after the sale. If these conditions are not met, the lender cannot obtain a deficiency judgment.

It’s important to note that if the foreclosure sale proceeds are insufficient to cover the loan, the borrower may still be responsible for any remaining deficiency, unless the proper notice and recording procedures are followed. The statute of limitations for filing deficiency judgments is two years from the date of foreclosure or two years after the loan payments were accelerated, making the entire unpaid balance due.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

The anti-deficiency rule prevents lenders from pursuing borrowers for the remaining balance on a mortgage after a foreclosure sale if the sale proceeds are less than the amount owed. This rule protects borrowers from being liable for deficiencies in states that have such laws, ensuring they are not burdened with additional debt after losing their property.