Can the lender come after you for the rest? Deficiency judgments in Massachusetts

Deficiency rules in Massachusetts, point by point

• The deficiency warning notice

  At least 21 days before the auction

  The lender must mail a Notice of Intention to Foreclose and of Deficiency After Foreclosure of Mortgage by registered mail, return receipt requested, to your last known address. It must warn that you may be liable for any shortfall from the sale.

  M.G.L. c. 244, § 17B

• The affidavit of mailing

  Within 30 days after the auction

  The lender must sign a sworn affidavit that it mailed the notice. Without the notice and a timely affidavit, it cannot bring a deficiency suit.

  M.G.L. c. 244, § 17B

• Two years to sue

  Within 2 years after the sale

  A deficiency suit on the mortgage note must start within two years after the foreclosure sale. If the principal did not come due until after the sale, the two years run from when it came due.

  M.G.L. c. 244, § 17A

• Second mortgages are covered too

  Within 2 years after the first mortgage's sale

  The same two-year limit applies to a suit on a note that was behind a first mortgage, after that first mortgage is foreclosed. Keep the date of the auction.

  M.G.L. c. 244, § 17A

• You cannot sign these rights away in advance

  Any agreement made before a suit

  Any agreement to waive the notice or two-year rules, or a promise not to rely on them, made before the suit is filed is void.

  M.G.L. c. 244, § 17C

• Short sale or deed in lieu

  Before you sign

  We did not find a Massachusetts statute that decides whether you owe a balance after a short sale or deed in lieu; the deficiency rules above are written for a foreclosure sale. The written agreement controls, so ask for a written release of any remaining debt.

• How long a judgment lasts and wage limits

  Presumed paid after 20 years

  A judgment is presumed paid 20 years after it is entered. If wages are attached, Massachusetts protects the greater of 85 percent of your gross wages or 50 times the higher of the federal or state hourly minimum wage for each week.

  M.G.L. c. 260, § 20; c. 246, § 28

The short answer in Massachusetts

Common questions in Massachusetts