No deficiency unless you got a 21-day warning before the sale
Mass. Gen. Laws ch. 244, § 17B
In plain words
A Massachusetts lender cannot sue you for a deficiency after a foreclosure sale unless it mailed you a written warning of liability at least 21 days before the sale and swore to that mailing within 30 days after. The lender also has only a limited time to sue.
Who is protected
Massachusetts borrowers after a foreclosure sale.
When it applies
- Only in Massachusetts.
- Only after the foreclosure sale.
What you can do
Ask in writing
If you are asked to pay a deficiency, ask for a copy of the 21-day notice and the affidavit of mailing.
Open the tool
Honest limits
- If the notice was properly sent, a deficiency may still be owed.
- This is general education, not legal advice. Laws change and details depend on your papers and your court; check the current law or ask a lawyer or legal aid.
The law
- State lawNotice required before a deficiency
Mass. Gen. Laws ch. 244, § 17B
What it says: No deficiency action unless notice was mailed at least 21 days before the sale, with an affidavit within 30 days after.
Read the official texthttps://malegislature.gov/Laws/GeneralLaws/PartIII/TitleIII/Chapter244/Section17B - State lawTime limit for a deficiency suit
Mass. Gen. Laws ch. 244, § 17A
What it says: Limits the time within which a deficiency action may be brought after the sale.
Read the official texthttps://malegislature.gov/Laws/GeneralLaws/PartIII/TitleIII/Chapter244/Section17A
Court cases
- Homeowner wonSame topicPinti v. Emigrant Mortgage Co.
Pinti v. Emigrant Mortg. Co., 472 Mass. 226 (2015)
strict compliance with the mortgage's notice-of-default provisions is a condition of a valid foreclosure sale
- Partial winSame topicEaton v. Federal National Mortgage Ass'n
Eaton v. Fed. Nat'l Mortg. Ass'n, 462 Mass. 569 (2012)
a foreclosing mortgagee must either hold the note or act on behalf of the note holder, a rule applied to foreclosures after the decision
- Homeowner wonSame topicU.S. Bank National Ass'n v. Ibanez
U.S. Bank Nat'l Ass'n v. Ibanez, 458 Mass. 637 (2011)
a foreclosing party must hold the mortgage by valid assignment at the time of the notice of sale and the sale, or the foreclosure is invalid
- Homeowner wonSame topicJerman v. Carlisle, McNellie, Rini, Kramer & Ulrich, L.P.A.
Jerman v. Carlisle, McNellie, Rini, Kramer & Ulrich, L.P.A., 559 U.S. 573 (2010)
the FDCPA's bona fide error defense does not excuse a debt collector's incorrect interpretation of what the Act requires
- Homeowner wonSame topicKaltenbach v. Richards
Kaltenbach v. Richards, 464 F.3d 524 (5th Cir. 2006)
a person who meets the FDCPA's general definition of debt collector is subject to the whole Act even while enforcing a security interest
- Homeowner wonSame topicHeintz v. Jenkins
Heintz v. Jenkins, 514 U.S. 291 (1995)
the FDCPA applies to lawyers who regularly collect consumer debts, even through litigation
Related rights
Right to a mailed notice at least 14 days before a foreclosure auction
Mass. Gen. Laws ch. 244, § 14
Before a Massachusetts foreclosure auction, the notice of sale must be published once a week for three weeks and mailed by registered mail to the owner at least 14 days before the sale. If the lender may seek a deficiency, it must also mail a separate warning at least 21 days before the sale.
Read this rightAfter a discharge, creditors cannot collect the wiped-out debt from you
11 U.S.C. § 524(a)(2)
A bankruptcy discharge wipes out your personal liability for most debts in the case. After that, the law forbids creditors from suing, calling or otherwise trying to collect a discharged debt from you personally. A court can hold a creditor in contempt if there was no fair doubt that its conduct was barred.
Read this rightThe government cannot keep your home equity beyond the tax debt
U.S. Const. amend. VTakings Clause
If your home is taken or sold to pay property taxes, the government may collect what you owe, but it may not keep the extra value. Keeping the surplus is a "taking" of your property without just compensation, which the Fifth Amendment forbids (Tyler v. Hennepin County, 2023). You may be able to claim the surplus, but you usually must follow your state's claim process and deadlines.
Read this rightA collection or charge-off must carry its real delinquency date
15 U.S.C. § 1681s-2(a)(5)(A)
A company that reports an account placed for collection or charged off must tell the credit bureau the month and year the delinquency began, within 90 days. That date sets when the item must come off your report, and it does not change when the debt is sold.
Read this rightMake the company that reported the error investigate it
15 U.S.C. § 1681s-2(b)(1)
The company that reported the information — such as your servicer — must investigate when a credit bureau passes along your dispute, and fix what is wrong with every bureau. In many cases you can also dispute directly with that company, which must then investigate and report back to you.
Read this rightMost negative items must come off after 7 years
15 U.S.C. § 1681c(a)(a)(1), (4), (5)
Credit bureaus may not report collection accounts, charge-offs and most other negative items that are more than 7 years old. For a collection or charge-off, the 7 years start 180 days after the delinquency that led to it began — so, about 7½ years from the first missed payment that was never brought current. Paying, settling or re-selling the debt does not restart this clock. Bankruptcies can be reported for 10 years.
Read this right