Foreclosure is a legal process through which lenders can collect mortgage debts when the lenders stop paying their monthly obligations. This process causes people to lose their homes as it sells homes to obtain what is owed to them and considering how meaningful it is to own a home actually it is a part of attaining the American dream and to others a lifetime investment which they have given it all they got to acquire.Therefore,losing a home is a heart aching and a stressful event to face for most of the people going through foreclosures.
Order of notice
This notice is a part of the Service-members Civil Relief Act. A lender wishing to foreclose must first file a complaint under this Act with the land court.It seeks to ascertain whether the owner is serving in the military due to the protections in this regard.Where the borrower is not serving the military the case can be settled quickly. The land court issues an order of notice to the plaintiff directing him/her on how to serve them to the borrower.Three methods are to be used:
- Served to the homeowner by the sheriff or through the homeowner’s certified mail.
- Published once in the newspaper.
- Record it at the registry of deeds.
This order of notice bears on it a return date by which the debtor must file an answer should be a beneficiary of the protections of the service-members statutes.Should no answer be filed by this date, the court will issue judgment in favor of the plaintiff(lender) ending this proceeding and from here the foreclosure can be scheduled.
Foreclosure sale
Foreclosure is the last resort once your other legal alternatives are not viable.These cases are never the same however the following are common issues to expect:
- Lenders must send a notice of the sale to you at least 14days before the foreclosure sale date.
- The sale will be conducted by a licensed auctioneer who will read the legal notices, description and documents about the property.
- The auctioneer will take the bids on the property, take deposit checks and accept the highest bid to close the close the foreclosure property sale.
- Parties: mortgagor, buyer and the auctioneer will draft a foreclosure deed, which must be recorded and filed at the registry of deeds.
- A grace period of 30 days will be given to allow the purchaser to line up financing.
- A closing will take place and the new owner will formally take title of the foreclosed property.
All the proceeds raised from this endeavor are utilized in clearing the estate taxes, owed mortgage and other secured debts backed by the property.Where they are inadequate to cover all the obligations a deficiency will result and for the lenders in question to obtain this deficiency will have to file a lawsuit seeking a deficiency judgment against the old owner.
Sources
https://www.foreclosuresinmass.com/FAQ.aspx
https://lowelldeeds.blogspot.com/2013/07/foreclosure-timeline.html