If a deficiency is to be pursued, the bank must include a notice of intent to seek deficiency with the required Notice of Sale. This Notice of Sale must be served on the borrowers at least 21 days prior to the actual auction.
Massachusetts judgments are enforceable for 20 years. They can be renewed for another 20 years if you notify the court that the judgment has not yet been satisfied.
An unusual part of Massachusetts law is that to keep your judgment alive, you must get a Writ Of Execution (WOE) from the court, within one year of when you are entitled to get a WOE from that court. If this sounds complicated - the actual text of the law about this is even more complicated.
Massachusetts treats WOEs differently than most other states. WOEs must be obtained from the court with one year, and in general they last as long as the judgment does. If you use a WOE to successfully collect some of the debtor's assets, you have used it up. You must then get a new WOE that shows much the debtor already paid. And you must get this new WOE within five years.
With a WOE, you can attach the debtor's wages or their bank account, or ask the sheriff to levy and sell a debtor's asset. (For details, see chapter 246 of the General Laws of Massachusetts.)
To levy a bank account, you first get permission from the court. Then you take the WOE, with levy instructions, and pay the local sheriff to levy the debtor's bank account
To levy a debtor's wages, you have to mail the debtor notice of the wage levy request by registered mail, to give them at least ten days notice of the planned wage levy. The first $125 of weekly wages are usually exempt. Then you take the WOE, with instructions, and pay the local sheriff to levy the debtor's wages.
You can also use a WOE to levy debtor's personal property such as a car, jewelry, or musical instrument, or their TV set. You don't get to seize the items yourself. You have to pay a sheriff to take and store the items before they are sold at a public auction. Note that this is not always cost-effective.
If the debtor has or will one day have equity in real estate, you can record a lien at the county registry of deeds, in the county where the debtor's current or future property is. If the property is refinanced or sold, you might get paid.
***We are not lawyers*** Please seek legal advice.
Legal Counsel Gilmartin, Magence, and Ross