A Massachusetts lender conducted a power of sale foreclosure but failed to send the required right-to-cure notice under MGL Chapter 244, Section 35A before initiating the foreclosure process. The property was sold at auction to a third-party buyer who had no knowledge of the procedural defect. Which of the following best describes the legal consequence of this failure?
Correct Answer
B) The foreclosure sale may be voidable, and the former borrower may have grounds to challenge the title conveyed to the buyer
The right-to-cure notice under MGL Chapter 244, Section 35A is a mandatory pre-foreclosure requirement. Failure to comply with this statutory requirement can render the foreclosure sale voidable, meaning the former borrower may have legal grounds to challenge the validity of the title conveyed at the foreclosure sale. Massachusetts courts have held that failure to comply with the statutory foreclosure requirements can cloud or defeat the title acquired by the buyer at the foreclosure auction.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
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