How to Buy a Foreclosed Home in Massachusetts
If a homeowner in Massachusetts fails to pay the property tax, the home may be sold at a tax deed auction. If the homeowner does not make the mortgage payments, the home may be sold at a trustee auction. Homes are purchased at these foreclosure auctions. If the minimum bid is not reached at a trustee auction, ownership of the property reverts to the lender and is known as a REO property.
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Tax Deed Auctions
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Each Massachusetts County sets the rules and regulations for tax deed auctions. The tax delinquent property is sold to the highest bidder at the county auction. The minimum bid is the sum of the taxes owed and fees. The bidder must pay the full price with approved funds (such as a cashier's check). The county treasurer provides lists of homes to be sold at tax deed auctions.
Trustee Auctions
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Trustee auctions are held on the steps of the courthouse in each Massachusetts County. The minimum bid is the amount of the mortgage plus fees. The highest bidder receives title to the house and must pay with approved funds. Trustee auctions are listed in the legal sections of Massachusetts newspapers.
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REO Property
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The lender becomes the owner of the house if the house does not sell at the trustee auction. The lender often contracts with a Massachusetts real estate agent to sell the property. Real estate offices provide lists of foreclosed homes for sale.
Warnings
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Due diligence is required for the purchase of foreclosed homes. Carefully inspect the property and the title before purchase. Be aware of the property faults and any liens or encumbrances attached to the title. The original owners have a six-month right of redemption for homes sold at Massachusetts tax deed auctions.
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References
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