Boston has a steady supply of foreclosure sales for investors or home buyers looking for cheap real estate deals. Lenders of Boston homes and other real estate may foreclose on and dispose of properties by auction when the owner with a home mortgage goes into loan default. The lenders must first notify the public with a foreclosure listings so that prospective buyers have a chance to bid at the public auction. The buyers can then purchase Boston foreclosures by placing the highest bid at the auction.
Use Boston newspapers to find foreclosure listings. Most states that require a newspaper advertisement specify a county newspaper. In Massachusetts, the statute says a “town” newspaper. So you would look in a Boston newspaper to find Boston foreclosure notices. You may have to look in a smaller newspaper if you are in a town near to but outside the city of Boston. You may wish to try looking online first. Use the USNPL list of online Massachusetts newspapers at Usnpl.com/manews.php to look for Boston foreclosed properties.
In Massachusetts, a foreclosure listing must give the date, time and place of the foreclosure auction. Use these listings to find foreclosed homes in Boston that you would like to purchase and the schedule for their corresponding foreclosure sales.
Find out the payment terms by looking at each listing. According to Massachusetts foreclosure law, a Boston lender can set the payment terms. For example, a lender might require cash and can even demand full payment immediately upon the placing of a winning bid. Check with the lender before the auction day if you are not sure about the payment process.
Devise a bidding strategy. For each Boston foreclosure that you would like to purchase, you need a maximum bid that is higher than the amount due on the property but definitely lower than the foreclosed property’s fair market value. Speak to real estate professionals (agents of appraisers) to get some idea of the value of homes in that neighborhood. Also drive by at least once just to get an idea about the condition of the property and the neighborhood. Some conditions, such as crime, could lower the value of a Boston foreclosure.
Bid on Boston foreclosed properties at the individual auctions. Once you have won an auction, complete the payments according to the lender’s trustee’s instructions.
Obtain a property deed from the seller. You need to file this deed with the real property recording office in the same locale as the Boston foreclosure. Ask the seller where to file if you are not familiar with this office.
Massachusetts Legislature: Massachusetts Foreclosure Procedure