The foreclosure process is difficult, painful and bad for your credit. With the difficult economy and high unemployment rates, many people need to look at their options-before it is too late.

The Foreclosure Process

Before an official foreclosure sale can occur in Massachusetts, a ruling from the land court is required. If the home owner is an active member in the military, then his or her home may be protected under the Soldiers' & Sailors' Civil Relief Act, and the foreclosure may be postponed. However, once the land court makes a judgment authorizing the foreclosure, the lender may begin the sale process.

Before the day of the sale, the lender will run notices in a local newspaper-once per week for three weeks. These notices must run no less than 21 days before the sale date. Additionally, the lender must send the borrower and other affected parties a notice of sale at least 14 days before the sale date.

On the day of the sale, a licensed auctioneer will sell the property to the winning bidder. The winner will pay a deposit that day and will then pay the remaining balance within 30 days. Once the remaining funds are paid in full, within the 30 days, the official sale is recorded and the winning bidder becomes the new owner. If the property sells for a higher price than the amount owed, then the borrower will receive the surplus funds.

How to Avoid Foreclosure

One of the best ways to avoid foreclosure is to talk to your lender and try to at least make partial payments to temporarily delay foreclosure. In the mean time, you should consider listing your home for sale in order to pay off your debt and find a more affordable option. You can also ask about the possibility of a short sale. . . .

How a Short Sale Works
If you need to sell your home quickly to avoid foreclosure but cannot sell for the full amount that you still owe on the property, you may be able to negotiate a short sale with your lender. In recent years, most major lenders have restructured their business models so that they can take on more short sales. This means that the lender will accept a lower payoff amount in order to avoid foreclosure or dealing with a borrower who files bankruptcy. Selling your home in a short sale is much better for your credit than filing bankruptcy or going through a foreclosure.

A short sale is certainly more complicated than a typical home sale, which is why you need an experienced real estate professional at your side. If you need to sell your home to avoid foreclosure, contact me today to discuss your options.