After a non-judicial power of sale foreclosure in Massachusetts, the former homeowner believes the lender conducted the sale improperly. What statutory right does the former homeowner have during the period before the foreclosure sale is completed?
Correct Answer
B) The equity of redemption, which allows the borrower to pay off the full debt and stop foreclosure before the sale
In Massachusetts, borrowers have the equity of redemption — the right to cure the default and pay off the full outstanding debt at any time before the foreclosure sale is completed. This is an equitable right that exists in all mortgage states. Once the foreclosure sale is properly completed, the equity of redemption is extinguished. Massachusetts does NOT have a post-sale statutory redemption period for most residential mortgages.
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Related Topics & Key Terms
Key Terms:
Related Concepts
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
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