One of the most common questions I get from homeowners facing foreclosure is, how long does a foreclosure take? The quick answer is: a while. Compared to other states that have expedited the foreclosure process, foreclosures in Massachusetts generally take a long time to perform, from default of the loan to the foreclosure sale date. While earlier is always better for attempting to avoid foreclosure, this lengthy period of time works to a homeowner’s benefit in trying to resolve these matters.
While every foreclosure is different, the following are the typical steps in the process, which helps answer how long does a foreclosure take.
- Default of Loan (6 – 12 months): The first stage of the foreclosure process is when the homeowner defaults on the loan. While a lender can technically begin a foreclosure after the first missed payment, I have typically found that lenders wait 6-12 months after the initial default before moving ahead with the next steps towards foreclosure.
- Right to Cure/Request a Modified Loan (3-5 months): The next stage of the foreclosure process is the right to cure/right to request a modified loan period. Massachusetts law requires lenders to offer borrowers an opportunity to cure their loan default prior to foreclosure, as well as the opportunity to pursue a loan modification. Depending on the circumstances, a homeowner will either have 90 or 150 days for these options.
- Servicemember’s Case (4 months): Following the right to cure/request a modified loan, the next step in the foreclosure process is a Servicemembers’ Case, usually brought in the Massachusetts Land Court. A servicemembers’ case is solely to determine whether the homeowner is in the military and entitled to a postponement of the foreclosure. Unless a homeowner or their family member is in the military, the homeowner generally doesn’t have a defense in one of these cases. However, the lender will usually wait until it gets a default judgment against the homeowner and court order before commencing a foreclosure sale.
- Foreclosure Sale (1 – 3 months): Following the Servicemembers’ Case, the bank then begins the foreclosure sale process itself. This requires notice to the homeowner thirty days before the scheduled sale, as well as publication of three notices in the local newspaper. Sometimes, foreclosure sales may get postponed, for a number of different reasons.
- Post-Foreclosure Eviction Case (1 – 6 months): Following a foreclosure sale, the lender or the party who brought the property at the foreclosure sale needs to obtain possession of the property, through a post-foreclosure eviction. The eviction case generally begins 3-5 months after the foreclosure sale (through a notice to quit served upon the homeowner). The time period of the eviction case generally depends on whether the homeowner fights it: if the matter is uncontested, the lender will generally be able to evict in one month. If the homeowner raises a defense or counterclaim, the eviction can take up to six months (and sometimes even longer).
In answering how long does a foreclosure take, bear in mind that there are many factors that will delay the listed stages above. A loan modification application, for example, generally delays a foreclosure, while the lender considers whether the homeowner is eligible for loss mitigation assistance. A bankruptcy will also delay foreclosure: a lender generally can’t foreclose until its gets permission from the bankruptcy court. Finally, there is often delay in going from one step to the other: the ongoing foreclosure crisis continues to create a backlog of cases, which delays how quickly foreclosures go from start to finish.
Nonetheless, this summary provides a rough estimate of the stages of the foreclosure process and how long to expect each part of the process to take. If you find yourself in any part of the foreclosure process, contact me to see if I can be of assistance.