Massachusetts Counties

State Auction Process in Massachusetts

Massachusetts is a Tax Lien and Tax Deed State. While Massachusetts can have tax lien sales, most municipalities conduct tax deed sales instead. The predominant method for collecting delinquent real estate taxes in Massachusetts is the use of the “tax deed”.

Cities and towns in Massachusetts have the right to file a lien against a property owner in the Registry of Deeds to collect back taxes. If taxes remain unpaid, the taxing authority will eventually sell the lien or the property itself in a tax sale. The Land Court has jurisdiction over all tax lien foreclosures in Massachusetts.

Tax lien auctions in Massachusetts are held by the cities and towns, not the counties. The specific information for tax default sales can be found on the city’s or Town’s website that is conducting the auction. Prospective bidders should be aware that they will not be bidding to purchase marketable title to land. All parcels are sold to the highest bidder “as is,” with no guarantees for further construction and/or improvements to the parcels.

The successful bidder at a tax lien auction must pay a deposit of at least 10% of the selling price at the time of the auction. Such deposit shall be in the form of cash or a check made payable to the City/Town. Failure to complete the transaction will result in the forfeiture of the deposit.

The property owner has a redemption period of one year after the tax lien auction. During this time, the property owner can pay the taxes and redeem the property. If the property owner does not redeem the property, the holder of the lien can foreclose on the property.

Foreclosures in Massachusetts

In Massachusetts, lenders have two options for foreclosing on deeds of trust or mortgages in default: entry by possession or non-judicial foreclosure.

Entry by Possession

In this process, the lender can take possession of the property by obtaining a court order, entering the property peaceably, or with the consent of the buyer. If the lender maintains possession of the property for three years, the borrower loses all rights of redemption.

Non-Judicial Foreclosure

This process is used when a power of sale clause exists in the mortgage or deed of trust. The power of sale clause gives the lender the right to sell the property to pay off the balance on the loan if the borrower defaults. The sale must be conducted at a public auction, and the borrower has no right to redemption.

Power of Sale Foreclosure Guidelines

The following guidelines must be followed for a non-judicial foreclosure:

A notice of sale must be recorded in the county where the property is located.
The notice must also be sent to the borrower by registered mail and published in a newspaper of general circulation in the county where the property is located.
The notice must include the date, time, and place of the foreclosure sale, as well as the amount of the default.
The property will be sold to the highest bidder at the foreclosure sale.

Quick Facts

– Judicial Foreclosure Available: Yes
– Non-Judicial Foreclosure Available: Yes
– Primary Security Instruments: Deed of Trust, Mortgage
– Timeline: Typically 90 days
– Right of Redemption: No
– Deficiency Judgments Allowed: No