Massachusetts Foreclosure Listings Key Terms

Learn about some important terms associated with foreclosure listings in Massachusetts

By Jason Wood

When it comes to Massachusetts foreclosure listings, it's important to know the key terms associated with the process. Though many terms are common to all states, they may have different meanings and timelines due to the laws being different in each state.

Before you start examining the latest foreclosure listings literature, take the time to learn a few of the key terms. Here are some quality resources for information on terms associated with Massachusetts foreclosures.

Title theory

Title theory refers to the idea that any piece of property that is not fully paid off is still the property of the lender. Therefore, when a home is foreclosed upon, the bank is still the technical owner. After foreclosure, the bank will usually list the property for sale with a real estate firm.
Try: Visit the website for Foreclosure.com for more information about foreclosure and title theory.

Massachusetts non-judicial foreclosure

A non-judicial foreclosure is enacted when a "power of sale" clause is written into a Massachusetts deed of trust or mortgage. This clause pre-authorizes the lender to list the foreclosed property for sale if the borrower defaults.
Try: Visit the website for Foreclosure Law.org for a further discussion of non-judicial foreclosure law within the state of Massachusetts.

Judicial foreclosure

A judicial foreclosure refers to the fact that the bank must get a judgment in a Massachusetts court of law in order to eventually complete the process of foreclosing on a property. This policy is enacted if no "power of sale" clause exists.
Try: Foreclosure Protection.org has an in depth discussion of how judicial foreclosure works in Massachusetts.

Notice to quit

A notice to quit is a paper served by the sheriff to the owner of a property informing them that they have 72 hours to vacate the property. There is an appeal procedure in the state of Massachusetts that must occur prior to listing the foreclosed property for sale.
Try: The Massachusetts Court System has more information on notice to quit and the eviction process as it relates to foreclosure law in the state of Massachusetts.

Notice of sale, notice of auction

The notice of sale or notice of auction is a process that the bank must follow when auctioning, listing or selling a foreclosed property in the state of Massachusetts. The notice must be published in the paper at least 21 days before the sale. It then must recur two more times over the next two weeks.
Try: Visit the website for Realty Trac for more information on how a notice of sales operates within the state of Massachusetts.

Foreclosure deficiency

A foreclosure deficiency occurs when a property has been sold or auctioned by the bank to a new owner for less than the price of the previous owner's mortgage. In Massachusetts, the previous owner is liable for the deficiency unless otherwise negotiated by the bank.
Try: The Foreclosure Info.com contains a discussion of a foreclosure deficiency.