Best Mortgage Lawyers in Massachusetts

About Mortgage Law in Massachusetts, United States

Mortgage law in Massachusetts governs the relationship between homeowners, lenders, and other parties involved in the purchase, sale, and refinancing of real estate through mortgages. A mortgage is essentially a legal agreement in which property is used as collateral for a loan, typically for purchasing a home. Massachusetts is a “title theory” state, where the mortgage lender holds the legal title to the property until the loan is paid off. Mortgage law in Massachusetts addresses a wide range of issues, from the initial loan application to foreclosure processes, refinancing, loan modifications, and the rights and obligations of both borrowers and lenders.

Why You May Need a Lawyer

There are several situations in which individuals or families may require legal help with mortgages in Massachusetts. Common scenarios include:

• Purchasing a home and needing guidance on mortgage agreements
• Facing foreclosure or involved in a dispute with a lender
• Refinancing an existing mortgage or exploring loan modification options
• Reviewing closing documents to ensure fair and binding terms
• Encountering predatory lending or unfair practices by lenders
• Resolving title defects or questions about property ownership
• Dealing with inherited property and associated mortgages

Mortgage transactions can involve complex financial and legal terminology. A lawyer can ensure that you understand your rights, protect your interests, and help you avoid costly mistakes.

Local Laws Overview

Massachusetts mortgage law has several key aspects that set it apart from other states:

• Judicial vs. Non-Judicial Foreclosures: Massachusetts primarily uses non-judicial foreclosure, but the process is highly regulated and must follow strict notice and publication requirements.
• Right to Cure: Homeowners have the right to “cure” a default (bring the loan current) within a specified timeframe before foreclosure can proceed, typically 150 days after receiving a notice of default.
• Good Faith Requirement: Lenders are required to make a good faith effort to help homeowners avoid foreclosure, including offering loan modifications if eligible.
• Mortgage Discharge: Upon payoff, lenders must promptly file a discharge of mortgage with the appropriate Registry of Deeds to clear the lien from the property.
• Consumer Protections: State and federal laws protect borrowers from predatory lending, require clear disclosures, and prevent unfair or deceptive practices by lenders.
• Title Insurance: Title searches and title insurance are standard parts of the closing process, ensuring buyers receive clear ownership.

Frequently Asked Questions

What is the difference between a mortgage and a deed of trust in Massachusetts?

Massachusetts primarily uses mortgages rather than deeds of trust. In a mortgage, the lender holds the legal title to the property until the debt is paid off, while the borrower retains equitable title.

How long does the foreclosure process take in Massachusetts?

The foreclosure process usually takes several months. Lenders must provide a notice of default and a right to cure period, typically 150 days, before proceeding with foreclosure sales.

Can I stop a foreclosure once it has started?

Yes, homeowners have a right to cure the default during the notice period. You may also be able to stop foreclosure by negotiating a loan modification, refinancing, or filing for bankruptcy, but you should consult an attorney promptly.

Do I need a lawyer to buy or refinance a home in Massachusetts?

While it is not legally required, it is highly recommended to have a lawyer review closing documents, title searches, and mortgage agreements to protect your interests.

How can I know if my lender is engaging in unfair or predatory lending practices?

If your lender is not providing clear loan terms, charging excessive fees, or using aggressive sales tactics, you may be a victim of predatory lending. Massachusetts law provides protections and remedies, so you should seek legal advice if you suspect unfair practices.

What are my rights if I inherit property with a mortgage in Massachusetts?

Heirs can assume the mortgage, refinance, pay it off, or negotiate with the lender. Lenders are prohibited from calling the loan due solely due to inheritance, but timely communication with the lender and possible legal guidance are important.

What is a mortgage discharge and why is it important?

A mortgage discharge is a legal document that proves the mortgage loan is paid off and the lien is released from your property. Lenders must file this document with the Registry of Deeds to clear your title.

Am I responsible for property taxes and insurance if I have a mortgage?

Yes, homeowners are responsible for ensuring that property taxes and insurance are paid. Often, lenders collect these payments through escrow accounts with your mortgage payment.

Can I refinance my mortgage if I have missed payments?

It can be more difficult to refinance if you have missed payments or have damaged credit, but options may be available depending on your situation and lender policies. Consulting with a lawyer or housing counselor can help you explore your options.

How do I resolve a dispute with my mortgage lender?

Start by documenting all communications and attempting to resolve the issue directly. If unsuccessful, you can contact consumer protection agencies or seek legal assistance to file a formal complaint or pursue other remedies.

Additional Resources

If you need more information or assistance regarding mortgages in Massachusetts, the following resources may be helpful:

• Massachusetts Division of Banks - Oversees mortgage lenders and brokers, offering information and complaint resolution
• Massachusetts Attorney General’s Office - Provides consumer protection and information on mortgage rights
• U.S. Department of Housing and Urban Development (HUD) - Offers housing counseling and information on federal mortgage programs
• Local Legal Aid Organizations - Offer free or reduced-cost legal services for qualifying residents facing foreclosure or mortgage disputes
• Registry of Deeds - For title searches, mortgage recordings, and discharges

Next Steps

If you are dealing with a mortgage issue in Massachusetts and believe you need legal advice, consider the following steps:

• Gather all relevant documents such as loan agreements, notices, and correspondence with lenders
• Contact a Massachusetts-based attorney who specializes in real estate or mortgage law
• Prepare a list of questions and concerns to discuss during your legal consultation
• Explore free or low-cost legal resources if you are unable to afford a private attorney
• Take action quickly, especially if you are facing foreclosure or time-sensitive issues

A knowledgeable attorney can help you understand your rights, explore your options, and represent your interests in negotiations or legal proceedings related to your mortgage.