Disclaimer: This article is for educational purposes and does not constitute legal advice.
Detailed Answer
When joint owners face a looming foreclosure hearing in Massachusetts, timely preparation can protect equity and simplify the sale process. Follow these steps under Massachusetts law to prepare a co-owned property for sale before the foreclosure sale date.
1. Review Ownership and Mortgage Documents
Gather the deed, mortgage note and any riders, and the most recent payment history. Confirm the names of all co-owners and verify the property’s legal description. Ensure you understand the default notice timeline under Massachusetts General Laws chapter 244, section 14 (https://malegislature.gov/Laws/GeneralLaws/Part IV/Title II/Chapter 244/Section 14).
2. Communicate with All Co-Owners
Open a written dialogue. Massachusetts treats joint owners—whether as tenants in common or joint tenants—equally for decisions affecting the property. Secure unanimous consent in writing to list and sell. If one co-owner resists, any owner can file a partition action under G.L. c. 241, § 1 (https://malegislature.gov/Laws/GeneralLaws/Part I/Title III/Chapter 241/Section 1) to force sale or divide proceeds.
3. Obtain a Professional Valuation
Hire a certified appraiser to establish fair market value. An accurate appraisal informs pricing, ensures transparency among owners, and addresses lender queries during loss mitigation talks.
4. Contact the Lender About Alternatives
Under Massachusetts law, lenders must notify mortgagors of foreclosure prevention options, including loan modification or short sale. Communicate early to explore mediation or the Homeowner’s Loan Mediation Program before the scheduled hearing.
5. Prepare Property for Market
Complete basic repairs, clean the premises, and stage rooms to boost curb appeal. Collect permits, inspection reports, and Homeowner Association documents if any. Provide prospective buyers with a clear title history.
6. Engage a Real Estate Professional and Attorney
Work with a real estate agent who understands foreclosure timelines and court sale rules. Consult an attorney to review sales contracts, division of proceeds and to file any necessary court notices, such as a notice of pending sale, with the Clerk of Courts.
7. List Quickly and Monitor the Foreclosure Schedule
Once you list, monitor the foreclosure docket at the local housing court for scheduled sale dates. Coordinate closing well before the foreclosure hearing to transfer clear title and distribute net proceeds according to each owner’s share.
Helpful Hints
- Track deadlines under G.L. c. 244 to avoid a completed foreclosure sale.
- Document all co-owner communications in writing to prevent disputes.
- Use a sales contract with a contingency clause for lender approval if needed.
- Verify the payoff amount with the lender in writing to calculate closing costs.
- Consider a short sale if full value won’t cover the mortgage balance.
- Retain copies of all closing documents, recording receipts and court notices.
- Confirm proceeds distribution matches ownership percentages on the deed.
- Consult a counselor approved under G.L. c. 244, § 35A for foreclosure prevention guidance.