Can a Deficiency Juudgment Be Obtained in a Massachusetts Foreclosure?
Full Question:
Answer:
In Massachusetts, a deficiency judgment may not be generally obtained when a property in foreclosure is sold at a public sale for less than the loan amount which the underlying mortgage secures unless certain notice requirements are met. An attempt to collect a deficiency will potentially open the door to a redemption action in a judicial foreclosure.
If the foreclosure sale proceeds are not enough to pay off the lender, then the borrower is liable for any deficiency. However, the statutory notice of intention to foreclose must have been sent at least 21 days before the sale. Also, the affidavit that the sale was complete must be recorded within 30 days after the sale. Otherwise, no deficiency can be obtained. The statute of limitations on deficiency judgments is two years after the date of foreclosure or two years after the loan payments were accelerated and the loan's unpaid balance was made due entirely.
