Massachusetts at a glance
Checked against the sources cited, 2026-09-19
| Topic | What the law says, and where it says it |
|---|---|
| How foreclosure works here | Massachusetts lets a mortgage holder foreclose without a court action by using the power of sale in the mortgage, after publishing notice of the sale for three successive weeks and mailing notice to the owner. The statutes also allow foreclosure by entry (possession continued peaceably for three years) or by a court action. Mass. Gen. Laws ch. 244, §14; ch. 244, §1 Show the source textmay, upon breach of condition and without action, perform all acts authorized or required by the power of sale |
| Who holds foreclosure surplus | The mortgage holder that ran the sale keeps what the mortgage secures plus its costs out of the sale money and must turn over any surplus to the mortgagor or the mortgagor's heirs, successors or assigns, unless the mortgage says otherwise. It must also send the mortgagor a written itemized accounting of the sale proceeds, including any surplus due. Mass. Gen. Laws ch. 183, §27 Show the source textrendering the surplus, if any, to the mortgagor, or his heirs, successors or assigns, unless otherwise stated in the mortgage |
| Claim window for foreclosure surplus | Section 27 sets no deadline for a former owner to claim the surplus and does not say what happens to surplus that is never claimed. It does require the mortgage holder to send the itemized accounting, including any surplus due, within 60 days after it receives the sale funds; that accounting is put on hold while the sale is subject to further legal proceedings. Mass. Gen. Laws ch. 183, §27 Show the source textand any surplus due to the mortgagor, within 60 days after the receipt of such funds |
| Tax sale excess proceeds | Massachusetts is a tax title state: a tax title comes from a collector's deed or a taking of land for taxes, and the owner can redeem until the land court enters a judgment foreclosing the right of redemption. After that judgment the municipality or tax receivable buyer (the judgment holder) must choose to keep or sell the property, and the former owner and others who held an interest keep the right to the excess equity above the taxes, interest, fees and costs. The judgment holder holds excess equity in escrow in a segregated interest-bearing account. Where it does not know the claimants' identity and address, claims must be submitted to it in writing not more than 18 months after the date of its notice, and excess equity not claimed within 19 months of the sale or appraisal is handled under the unclaimed property law, chapter 200A. Mass. Gen. Laws ch. 60, §64A(a), (d)(3), (e); ch. 60, §64; ch. 60, §1 Show the source textExcess equity that has not been claimed within 19 months of a sale or appraisal of a property shall be disposed of pursuant to chapter 200A. |
| Redemption after the sale | There is no right to redeem after a power of sale foreclosure: the statute lets a mortgagor redeem after default unless the land has been sold under the power of sale in the mortgage. Where the lender instead forecloses by entry, the right of redemption ends after possession has continued peaceably for three years from the recording of the certificate of entry. Mass. Gen. Laws ch. 244, §18; ch. 244, §1 Show the source textor unless the land has been sold pursuant to a power of sale contained in the mortgage deed |
| Rules for recovery companies | Under the Massachusetts unclaimed property law, an agreement to pay someone to recover property reported to the State Treasurer is unenforceable if it is made within 24 months after the property was paid or delivered to the Treasurer. A later agreement is valid only if it is in writing, signed by the owner, discloses the nature and value of the property and the name and address of whoever holds it, and the fee does not exceed ten percent. The owner may still claim at any time that the compensation is excessive or unjust. No Massachusetts statute was found that specifically regulates fees for recovering mortgage foreclosure surplus, or tax title excess equity before it is turned over under chapter 200A. Mass. Gen. Laws ch. 200A, §13 Show the source text(b) the fee or compensation does not exceed ten percent at any time |
How surplus funds arise in Massachusetts
When a home in Massachusetts is sold at a foreclosure sale or a tax sale for more than the debt and the costs of the sale, the money left over is surplus funds, also called excess proceeds or overage. It does not belong to the lender or to the buyer. Liens recorded behind the foreclosed debt are paid first, and what remains belongs to the former owner or to the owner's heirs. Read surplus funds explained for the general rules and liens and competing claims for the order of payment.
How a claim moves in Massachusetts
We confirm the sale figures in the public record, identify which office in Massachusetts is holding the money, and prepare and file the claim the way that office requires, advancing the costs. Because we bring the whole record with us, the claim does not stall on a missing document, a competing name or a missed date. See how to qualify for what we handle and what you provide. Notices about surplus are usually mailed to the last address on record, which is often the home that was sold, so do not wait for a letter. In Massachusetts that program is the Massachusetts State Treasurer's Unclaimed Property Division.
If the owner has died
The right to the money belongs to the estate. Depending on the size of the estate, Massachusetts law may allow a simplified procedure, or a probate court may need to appoint a personal representative. See estate and heir recovery and probate assistance.
Working with a recovery company in Massachusetts
Massachusetts regulates this kind of service. Under the Massachusetts unclaimed property law, an agreement to pay someone to recover property reported to the State Treasurer is unenforceable if it is made within 24 months after the property was paid or delivered to the Treasurer. A later agreement is valid only if it is in writing, signed by the owner, discloses the nature and value of the property and the name and address of whoever holds it, and the fee does not exceed ten percent. The owner may still claim at any time that the compensation is excessive or unjust. No Massachusetts statute was found that specifically regulates fees for recovering mortgage foreclosure surplus, or tax title excess equity before it is turned over under chapter 200A. (Mass. Gen. Laws ch. 200A, §13)
Any agreement you sign, with us or with anyone else, has to follow that rule.
No out-of-pocket expense. Our only payment is a completion fee taken from the surplus once it is recovered. Where your state requires a licensed attorney for a court or probate filing, a licensed attorney handles it, and you still pay nothing out of pocket. Before you sign with anyone, read what a surplus funds scam looks like.
Questions about surplus funds in Massachusetts
Enough to prove who you are and how you held the property: identification, the deeds, any notice you received, and, if the owner has died, the estate paperwork. We do the rest for Massachusetts, from locating the funds to filing the claim.
The mortgage holder that ran the sale keeps what the mortgage secures plus its costs out of the sale money and must turn over any surplus to the mortgagor or the mortgagor's heirs, successors or assigns, unless the mortgage says otherwise. It must also send the mortgagor a written itemized accounting of the sale proceeds, including any surplus due.
No out-of-pocket expense. We advance the costs and are paid a completion fee from the surplus only after it is recovered. Where a court or probate filing requires a licensed attorney, a licensed attorney handles it.