Margaret defaults on her mortgage loan secured by her primary residence in Springfield, Massachusetts. Her lender wishes to foreclose. Under Massachusetts law, which foreclosure method is most commonly used in practice?
Correct Answer
C) Non-judicial foreclosure using the statutory power of sale
Massachusetts allows both judicial and non-judicial (power of sale) foreclosure, but non-judicial foreclosure using the statutory power of sale clause is by far the most common method used in practice. When a mortgage contains a power of sale clause, the lender may foreclose by advertising the sale and conducting a public auction without court involvement, following the statutory requirements under MGL Chapter 244.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
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