Today, we’ll discuss 2 steps you must take to avoid foreclosure in Massachusetts. Unfortunately since the COVID crisis began, there are many Massachusetts homeowners who find themselves in this situation, and there are two absolutely vital things you must do if you find yourself in that situation. So let’s dive right in.
Step 1: It’s Time To Take Action!
If you are in the unfortunate situation of facing default on your mortgage, the number one thing you have to do to avoid foreclosure in Massachusetts is simply decide to take some action. And do it right away! There’s a very important reason for this. In the mortgage that you signed with your lender, there are provisions that allow them to charge you for every single cost they have in trying to get their money back during this foreclosure proceeding.
So what does that mean? Well, if you get a letter from a lawyer representing the bank, you’re paying his legal costs. If the bank representative has to talk to the lawyer, they are charging you. Massachusetts law also says that if a foreclosure proceeding is going to happen, ads have to be placed in the newspaper for public notice. You end up paying for all of those.
In all the years that we’ve been working in Massachusetts, when we meet many people who are hoping to avoid foreclosure, the problem becomes extremely hard to resolve because they’ve waited so long that not only do they owe all the payments and interest they missed, they owe thousands and thousands of dollars in legal fees that the bank has incurred. So, again, it’s an unfortunate situation, but the best way to help yourself is to take a deep breath and decide that you must take some action now.
Step 2: Start Talking!
Now once you’ve decided that you need to take some action, the second thing you must do is establish a line of communication with your bank. Now, depending on the size of your bank, it may take you a little while to get to a person within that bank that can deal directly with you regarding your own situation. But, again, it’s vitally important that you establish that line of communication, let the bank know you are aware of the situation, you don’t want to be in that situation, and you’re trying your best to try and solve it.
They may ask you, “Okay, what can we do to help?” Please realize, banks don’t want to foreclose on you. That’s a myth that sometimes is not really understood by people. They do not want to foreclose. If banks have to foreclose on a house, they lose money, so they want to help (or at avoid a foreclosure proceeding). So please, establish a line of communication, let them know you’re aware of the situation, and ask them, “What exactly can I do to make this situation better?” It will go a long way in helping you get through this without incurring all kinds of costs and making the problem unsolvable.
So that’s it, short and sweet. If you find yourself in the unfortunate situation of facing a foreclosure in Massachusetts, decide to take some action. It’s the best way to avoid foreclosure and make sure the problem doesn’t get out of control. Then you should establish a line of communication with the appropriate person in the bank that has your loan. This is absolutely the best way to make sure the problem doesn’t get so far out of hand that it can never be solved.
If you have other questions, please don’t hesitate to call Summit Buys Houses. We do not provide legal help, but because of all the folks we’ve worked with over the years to avoid foreclosure situations, we’d be happy to visit with you, help you understand the situation better and hopefully move you to take action. Thanks again for being with us!
This is another installment in the Summit Buys Houses video series. As you might know, in this series we try to help homeowners who want to sell their house learn everything they can about that process and maximize their profits once they do decide to sell.
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