The foreclosure laws in Massachusetts are fairly unique. Before there can be Boston foreclosed properties, for example, the lender has to go to court and receive a judgment from the land court. The reason for this step is to protect members of the military from losing their homes while they are stationed elsewhere.
Once the judgment is given, the lender is free to initiate the selling of the Boston foreclosed properties. The borrower does not have to be notified of the default before the sale can be scheduled either. That means some borrowers learn about their foreclosure in the newspaper or in the notice they receive two weeks prior to the auction.
One of the nicest parts of the laws regarding purchasing Boston foreclosed properties for investors is that the highest bidder does not need to cough up the funds immediately. According to the laws in the state, you would have up to 30 days to pay the total bid amount on the property. Once payment is made and thirty days have passed, the property is turned over to the new buyer.
An advantage for the borrower is that any money in excess of the outstanding debt is given to him or her. That's very unusual but it does happen. You may want to keep that in mind while bidding.
