How can I avoid a deficiency judgment in Massachusetts?

Deficiency judgments in Massachusetts are not legal. If you believe your lender is applying a Massachusetts deficiency judgment against you, contact an attorney to find out what is occurring. The state does not allow this to occur and the lender could face legal repercussions for doing so. You may even be able to use this as a means to try and get back your property from foreclosure, though that process may be difficult.

Deficiency Judgments

In Massachusetts deficiency judgments are not allowable. This means that when a property goes through the foreclosure process and is sold at a public sale, the funds made from the sale are all the lender can receive from the property. In other states, if the property sells for less than what you owe on the loan, the lender can come after you for the unpaid portion of the loan (from the sale of the property.

If your lender is pursuing a deficiency judgment against you, you can usually avoid it. Follow these steps:

• Contact an attorney specializing in foreclosure advice.
• If the attempt to collect on the deficiency amount is occurring, this may allow for a redemption faction in judicial foreclosure to occur.
• Determine why the action is being allowed, if so. A judge may order it in some cases, such as when you have the funds to repay the loan.

Each situation is different and that is why it is critical to hire an attorney if you are facing foreclosure, even if you plan to allow the home to be lost through the foreclosure proceeding.