Bill > H2854

This bill modifies existing Massachusetts law regarding judicial foreclosures, which is the legal process a lender uses to take possession of a property when a borrower fails to make mortgage payments. Specifically, it changes how a mortgagee, or the lender, must proceed after initiating an action for possession. Instead of automatically seeking a writ of possession, which is a court order to physically remove the borrower, the mortgagee must now present a pre-conditional judgment order, a preliminary court finding related to the foreclosure process, and declare their ownership interest as a mortgage. If the court determines the lender is entitled to possession due to a breach of the mortgage agreement, it will issue a conditional judgment, which is a judgment that becomes final only if certain conditions are not met. Furthermore, if this conditional judgment is entered on a mortgage that includes a power of sale, meaning the mortgage document itself allows the lender to sell the property without a court order in case of default, the court will now order the property to be sold according to that power of sale, provided the lender has also fulfilled all requirements under Chapter 239A of the General Laws, rather than issuing a writ of possession. The lender is then responsible for carrying out the sale as outlined in the power of sale and any court directives.