The Warren Group, peripatetic observers of the Massachusetts real estate lending scene, report that the number of foreclosure petitions filed in Massachusetts in January was the lowest monthly level in a year.
Foreclosure deeds, however, have risen to a four year high. A foreclosure deed is recorded at the end of the foreclosure process, after the home has been auctioned and the owner evicted.
Foreclosure petitions are court documents that are filed towards the start of the process, when there still might be a chance of the homeowner saving his property and staying put. Under Massachusetts state law, lenders have to provide owners with a 90-day warning letter declaring their intent to start the foreclosure process. The petition can only be filed after the ninety days expire and the loan is still in default.
Homeowners who recieve a 90-day letter (usually by certified mail) may qualify for Chapter 13 bankruptcy relief. Filing a Chapter 13 case during the 90-day period would stop the foreclosure process cold, and allow the homeowners to propose a plan for catching up on missed payments. If you have received either a 90-day warning letter or a foreclosure petition, contact a Massachusetts bankruptcy attorney to see if a Chapter 13 bankrupty case is a viable option in your situation.