Foreclosure is the legal process effected through the court system in which a mortgagee (lender—often a bank) terminates a mortgagor’s (borrower’s) interest in the real property in which the mortgagor gave the mortgagee a security interest (a lien) as collateral for the loan used to purchase the property.

Foreclosure generally occurs when a homeowner defaults and fails to make mortgage payments as required by the loan agreement (promissory note).

Foreclosure allows the lender to seize the property, remove the homeowner, and sell the home—all of which are legal remedies the mortgagor and mortgagee agreed to in the mortgage contract.

In Massachusetts, foreclosure is a legal process where a lender may terminate a borrower's interest in property used as collateral for a loan, typically due to the borrower's failure to make the required mortgage payments. Massachusetts allows both judicial and non-judicial foreclosures. In a judicial foreclosure, the lender must file a lawsuit and obtain a court order to foreclose. Non-judicial foreclosure, which is more common in Massachusetts, does not require court action but must follow specific statutory procedures, including providing the borrower with a notice of default and the right to cure, and publishing a notice of sale. The process is governed by Massachusetts General Laws Chapter 244, which outlines the steps lenders must take to foreclose on a property legally. Borrowers have certain rights and protections, such as the right to receive notice and the opportunity to pay the overdue amount to stop the foreclosure. If the foreclosure proceeds, the property can be sold at auction, and the lender may seek a deficiency judgment if the sale proceeds do not cover the outstanding loan balance. It is advisable for homeowners facing foreclosure to consult with an attorney to understand their rights and options.