What is Foreclosure in Salem, Massachusetts?

Find the right Foreclosure Bankruptcy attorney in Salem, MA

Foreclosure is the process 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 Salem, Massachusetts has repeatedly failed to make their payments. Foreclosure typically results in the property being sold in an auction. Banks typically want to get rid of the property as soon as possible, even if it means taking a financial hit, and an auction is the easiest way to do this.

In every state, including Massachusetts, there is an option to go through foreclosure by a judicial sale, which is a procedure 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 finally to the debtor if anything is left. In many states, mortgages which have not been refinanced are "non-recourse loans." This means that, in the event of default, the bank can take ownership of the house and sell it; but if the sale price happens to be less than the balance of the mortgage, the lender cannot go after the borrower for the remainder. Because of this, some people have found that their best option is to simply walk away from the home if the mortgage is more than the house is worth. You should talk with a Salem, Massachusetts attorney to see if this state is one of them.

How Can I Avoid Foreclosure in Massachusetts?

First and foremost, you should not ignore the possibility of foreclosure. Failing to respond to collection calls from your lender will not make the problem go away. As unpleasant as this might seem, you should stay in contact with your creditor, and be forthright with them. It is crucial to remember that the bank does not really want your Salem house - they expected to make a profit through the interest on your loan, and that's what they'd prefer to do. Accordingly, they will probably make reasonable accommodations to your financial situation if it means that you will be able to make some form of payment to them.

If you can't work anything out with your lender, or have become completely unable to make any mortgage payments, a "short sale" might be a good option. This allows you to sell your house for whatever price it can get, and hand the proceeds over to the lender. If the sale price is less than the balance of the loan, the rest of the debt might be forgiven. You might also consider a "short refinance" which allows a chunk of the debt to be forgiven, and lets you refinance the rest.

How Can A Salem, Massachusetts Attorney Help?

If you are facing the possibility of foreclosure, a good Salem, Massachusetts real estate attorney can help. At the very least, they will be able to inform you of your legal options.

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Life in Salem

Salem is in Essex County of Massachusetts. It is home to Salem State University. In history the city is known because of the Salem Witch Trials of 1692. Today, people visit Salem and check out sites such as the Nathaniel Bowditch House, Salem Common, The Witch House, Derby Square, Pickering House, Salem Willows Park, Ropes Mansion, and Salem Athenaeum.

Tourism is a significant contributor to Salem's economy. There are small law offices where attorneys have established their practice in many areas of law. Therefore, residents can rest assure that their legal needs can be taken care of.

Famous residents of Salem include Rick Brunson, Jeff Juden, Rob Oppenheim, Nathaniel Bowditch, John Endcott, John Hathorne, Bob Vila, Jack Welch, and Steve Thomas.

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