To delay eviction after foreclosure in Massachusetts, you can file for bankruptcy (Chapter 7 delays eviction a few months, Chapter 13 allows a repayment plan), contest the eviction in court by challenging procedural errors or improper notices, negotiate “cash for keys” agreements with the new owner, or apply for legal aid representation to identify flaws in the eviction process. After foreclosure auction, new owners must provide 3-30 days notice to vacate before filing eviction lawsuits in court. Filing for bankruptcy triggers an automatic stay that immediately halts all eviction proceedings temporarily. Massachusetts uses primarily non-judicial foreclosure, which is faster (completing in months) and offers fewer contestation opportunities than judicial foreclosure. The foreclosure timeline includes a 150-day right-to-cure period after default, acceleration notice demanding full mortgage balance, trustee’s sale notice, and auction before eviction begins. Additional delay strategies include proposing rental agreements to remain as tenants, seeking Emergency Solutions Grant (ESG) assistance for temporary housing, and working with nonprofit organizations that provide housing support services.
Understanding Foreclosure and Eviction
The Foreclosure Process
Foreclosure begins when a homeowner misses mortgage payments, prompting the lender to initiate legal proceedings to reclaim the property. In Massachusetts, the process involves several steps:
- Late Payment: After a grace period, typically 15 days, lenders will contact the homeowner about missed payments.
- Default: After 30 days without payment, the loan is in default. Lenders increase efforts to collect payments and may send a right-to-cure notice.
- Right to Cure Notice: This notice gives homeowners 150 days (or 90 days in some cases) to catch up on payments to avoid foreclosure.
- Acceleration Notice: If the debt isn’t cured, the lender can demand the entire mortgage balance due immediately.
- Notice of Trustee’s Sale: The lender schedules a sale date and publishes the notice.
- Auction: The property is auctioned, and the highest bidder wins.
- Eviction: Post-auction, the new owner can initiate eviction proceedings to remove the occupants.
The Eviction Process
Once the property is sold, the new owner can start the eviction process:
- Notice to Vacate: The new owner provides a notice period (usually 3-30 days) for the former homeowner to vacate.
- Court Proceedings: The new owner files an eviction lawsuit if the homeowner doesn’t leave.
- Eviction Order: A court order is issued for eviction.
- Forced Eviction: Law enforcement may remove the occupants voluntarily if they do not vacate.
Legal Strategies to Delay Eviction
Filing for Bankruptcy
Filing for bankruptcy is one of the most effective ways to delay eviction. Bankruptcy triggers an automatic stay, temporarily halting all eviction proceedings:
- Chapter 7 Bankruptcy: This can delay eviction for a few months but not provide a long-term solution.
- Chapter 13 Bankruptcy involves a repayment plan, which allows homeowners to catch up on missed payments and possibly keep their homes.
Contesting the Eviction in Court
Challenging the eviction in court can delay the process. Homeowners can argue procedural errors, improper notice, or issues with the foreclosure process:
- Procedural Errors: If the lender didn’t follow legal procedures, eviction can be contested.
- Improper Notice: Invalid notices can delay eviction proceedings.
- Foreclosure Issues: Disputing the foreclosure’s legitimacy can provide additional time.
Applying for Legal Aid
Legal aid organizations can assist those facing eviction:
- Legal Representation: Attorneys can represent homeowners in court and potentially identify flaws in the eviction process.
- Legal Counseling: These organizations offer guidance on rights and options, aiding negotiations with new owners.
Practical Strategies to Delay Eviction
Negotiating with the New Owner
Direct negotiation can result in agreements to delay eviction:
- Cash for Keys: Offering to leave peacefully in exchange for cash can buy extra time.
- Rental Agreement: Proposing to stay as tenants might appeal to new owners.
Seeking Temporary Housing Assistance
Various programs provide temporary housing solutions:
- Government Assistance Programs: Programs like the Emergency Solutions Grant (ESG) offer rental assistance.
- Nonprofit Organizations: Charities and nonprofits provide temporary housing and support services.
After The Foreclosure Sale
In some states, foreclosed-on homeowners can regain ownership of their homes through “statutory redemption” or “right of redemption.” During a certain period, you can redeem your property by paying off the house’s purchase price. This is not likely in Massachusetts. Most foreclosures in Massachusetts are nonjudicial.
Judicial Foreclosure
In judicial foreclosure, the lender sues the borrower in court to foreclose. The court oversees the process, ensuring legal compliance and borrower rights, typically extending the timeline significantly.
Non-Judicial Foreclosure
Non-judicial foreclosure bypasses court involvement, following state-mandated steps with a power of sale clause. It is faster, often concluding within a few months, but offers fewer opportunities for borrower contestation.
If you don’t have the financial muscle to save your home, you need to find a solution fast. A foreclosure can hurt you and your family financially in the following ways:
- Drop your credit score by 100 or more points
- Prevent you from buying a house and securing loans for 3-7 years
- Make it difficult for you to find another place to live
- Forgiven debt is viewed as taxable income by the IRS
Selling your home because of financial issues is the last thing you want when you become a homeowner. However, the consequences of foreclosure may outweigh staying in your home, awaiting the inevitable. We can help you avoid the foreclosure process and possibly pay off all your debt with an all-cash offer.
Chat with the real estate experts at New England Home Buyers to discuss relieving yourself of your financial obligation.
