What is Foreclosure in Lawrence, Massachusetts?

Find the right Foreclosure Bankruptcy attorney in Lawrence, MA

Foreclosure is the procedure through which the lender in a mortgage takes ownership and/or possession of the property that secured the original loan. This happens when a debtor in Lawrence, Massachusetts has consistently failed to make their payments. Foreclosure usually results in the property being sold in an auction. Banks usually want to get rid of the property as soon as possible, even if it means taking a financial hit, and an auction is the simplest way to do this.

In every state, including Massachusetts, there is an option to go through foreclosure by a judicial sale, which is a process in which a court supervises the sale of the property, and makes sure that the proceeds first go the to the holder of the mortgage, then to anyone else who may have a lien on the property, and lastly to the debtor if anything is left. In numerous states, original mortgages (as opposed to refinanced loans) are "non-recourse" loans, meaning that the most the lender can collect is whatever the foreclosed property sells for. The bank cannot go after the debtor for the balance, if the sale nets less than the amount due. You should consult an attorney in Lawrence, Massachusetts to learn the details of the law here. You should also know that this rarely applies to loans that have been refinanced.

How Can I Avoid Foreclosure in Massachusetts?

First and foremost, you should not dismiss the possibility of foreclosure. Failing to respond to collection calls from your lender will not make the problem go away. As unpleasant as this may seem, you should stay in contact with your creditor, and be honest with them. You should remember that banks in Lawrence don't want your house. While the foreclosure process can be devastating for the homeowner, it's no walk in the park for the bank, either. They expected to make a profit through interest on the loan paid over time, and foreclosure is a last resort, allowing them to cut their losses and move on. If you are honest with them, lenders will usually try to accommodate your changed financial situation, to avoid a default on your part, and the necessity of foreclosing on their part.

If you believe that foreclosure is imminent, there are some other avenues. For example, you may be able to engage in a "short sale," which sometimes allows you to sell your house for whatever amount you can receive, give the proceeds to the lender, and walk away free of your mortgage debt, even if the sale netted less than the balance of the mortgage. There is also the option of a "short refinance," which forgives a significant portion of your mortgage debt, and refinances the rest.

How Can A Lawrence, Massachusetts Attorney Help?

If you think foreclosure is imminent, a good Lawrence, Massachusetts lawyer may be your best hope for staving it off. Even if keeping the house proves impossible, a good attorney can minimize the financial effects.

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Life in Lawrence

Lawrence, Massachusetts is a city located in Essex County. According to a 2007 Census estimate, Lawrence has a population of about 70,000 people. Along with Salem, Lawrence is the county seat of Essex County.

Lawrence, Massachusetts was first founded in 1640, as an English settlement. During the industrial revolution, which went on from the mid-1800s to the early 20th century, Lawrence grew rapidly.

Lawrence quickly became home to many large and productive textile mills. However, like many cities during the industrial revolution, Lawrence underwent significant growing pains. In 1912, a mill collapsed, and killed over 140 workers. This, along with many other factors, such as sub-standard working conditions and low pay, led to a strike by over 25,000 workers, now known as the Bread and Roses Strike, which has since become a rallying cry for many workers' rights organizations.

In the 1950s, Lawrence saw a decline in many of its traditional industries, which led to a period of economic hardship. However, its economy is currentlyseeing some improvement, witha sharp decrease in violent crime, and a spike in private investment, with many investors purchasing the many old mill and factory buildings.

If you live in or near Lawrence, Massachusetts, chances are very good that you'll be able to find a good lawyer. Lawrence, Massachusetts lawyers have to deal with a wide variety of cases, and as a result, tend to be well-rounded.

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