Massachusetts situation guide · Updated November 2026

Wholesaling Houses With Liens in Massachusetts

Wholesaling houses with liens in Massachusetts means contracting to buy a home that carries recorded claims, then assigning that contract to a buyer who pays them off at closing. In Springfield and the rest of Hampden County, the sale only works when the price covers every payoff and still leaves the owner something.

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The short answer

Can you wholesale a house with liens in Massachusetts?

Yes. You can put a lien-burdened house under contract in Springfield and assign it, as long as the price covers the payoffs and you tell the seller in writing that you may assign. Settle the exact payoff figures before you promise a number.

A lien is a recorded claim against the property. The usual ones here are a mortgage, a municipal tax taking, a judgment, a contractor’s claim and a federal tax notice. Our judgment lien guide and mechanic’s lien guide show how each one attaches. Count them all before you talk price with the owner.

No wholesaler-specific statute was found in Massachusetts, so check current text and ask a Massachusetts attorney. Broker rules still matter. M.G.L. c. 112, s. 87PP and s. 87RR cover acting for another person for a fee, and our license guide walks through the risk. Run the offer through the MAO calculator only after the payoffs are known.

Houses With Liens in Massachusetts at a glance

Where claims are recorded	County registry of deeds; Hampden County covers Springfield
Tax title redemption	Generally allowed until a foreclosure petition is filed (c. 60, s. 62)
Interest on a tax title	8% per year under c. 60, s. 62
Power-of-sale buyers	Take subject to prior liens and tax titles (c. 244, s. 14)
Deed excise tax	$2.00 per $500 of consideration (c. 64D, s. 1)
Wholesaler statute	None found; check current text

The opportunity

Why wholesaling houses with liens in Massachusetts can work

Springfield is one of the lower-priced big cities in the state, and many owners in Forest Park, McKnight and Indian Orchard have owned for decades. Unpaid bills, old judgments and a second loan can stack up on a house that still has real equity. A buyer who can read a title report and write a clean payoff plan may be the only exit they have. Our motivated seller guide shows where to start.

Stuck owners

Owners who cannot sell the usual way will often accept a fair cash price with a firm closing date. See cash for keys.

Hidden equity

A house worth $230,000 with $130,000 in claims still leaves room for a seller, a fee and a buyer margin.

Less competition

Most buyers skip anything with a title note. Learning to do a title search sets you apart.

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Lead sources

Where to find houses with liens in Springfield

Registry of deeds. Search Hampden County records for tax takings, judgments and notices. Our owner lookup guide helps.
Tax delinquent lists. City tax title and delinquent accounts point to owners behind on bills. See tax delinquent lists.
Code enforcement. Fines and repair orders can turn into charges on the property. See code violation leads.
Direct mail. Short, plain letters work for owners who already know they have a problem. See yellow letters.
Referrals. Local attorneys, collection lawyers and tax-help counselors meet owners with claims every week.

Your exit

Who buys houses with liens in Massachusetts

Rehabbers and small landlords who already know the Springfield streets are the main buyers. They want a price low enough to absorb the payoffs, plus repairs, and still profit.

Give your buyer the title findings and payoff letters up front. Pair this with an investor-friendly title company and ask your attorney how payoffs will be paid from the proceeds.

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Step by step

How to start wholesaling houses with liens in Massachusetts

Pull the title. Order a search from the registry so you see every recorded claim. Our title search guide explains the steps.
Ask for payoff letters. Mortgage and judgment holders can state a figure. See payoff statements.
Add it up. Use the ARV calculator and the MAO calculator with all payoffs in the cost column.
Make the offer. Put the price in writing with the assignment right clear, following our offer guide.
Explain your role. State that you are a buyer, not an agent. Our assignment guide covers wording.
Find the buyer. Send the title summary and numbers to rehabbers who work Hampden County.
Close with an attorney. Massachusetts closings are usually run by attorneys. Confirm that payoffs and the deed excise tax are handled at the table.

Your checklist for wholesaling Houses With Liens in Massachusetts

Order a full title search before you sign anything.
Request written payoff statements from every lienholder.
Check whether a tax title has been foreclosed on or can still be redeemed.
Write the assignment right and your role into the contract.
Have a Massachusetts attorney review the closing plan.

A Massachusetts example: a Springfield owner with three recorded claims

Contract price	$190,000
Mortgage payoff	$112,000
City tax title	$13,400
Judgment payoff	$8,600
Deed excise tax	$760
Assignment fee	$9,000

This worked example uses made-up numbers. A retired owner in Forest Park fell behind on property taxes and had a judgment from an old medical debt.

You contracted at $190,000 and gathered payoff letters totaling $134,000. The deed excise tax on that price comes to $760. After payoffs and tax, the owner would net about $55,240, which was more than any other buyer had offered.

A local rehabber paid you a $9,000 assignment fee and closed with the attorney in about five weeks. The tax title was redeemed from the closing funds before the city filed anything further. That is wholesaling houses with liens in Massachusetts done in order: numbers first, then the offer.

Massachusetts rules to know

Tax title, power of sale and broker rules

Under M.G.L. c. 60, s. 62, a person with an interest in land taken for taxes can generally redeem until a petition to foreclose is filed, by paying the tax title account with 8% interest and charges. Check current text and ask the treasurer for a figure.

A mortgage foreclosure by power of sale under c. 244, s. 14 is sold subject to prior encumbrances, tax titles and public taxes. Separately, c. 112, s. 87RR says an unlicensed person cannot recover broker compensation in court. Review our attorney guide before you rely on any fee.

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FAQ

Houses With Liens in Massachusetts: common questions

Is wholesaling houses with liens in Massachusetts legal?

Generally yes, when the contract is honest and the sale price covers the payoffs. No wholesaler-specific statute was found, but broker licensing rules in M.G.L. c. 112 can apply when you act for another person for a fee. Check current text and ask a Massachusetts attorney before you sign.

Who pays off the liens?

They are normally paid from the sale proceeds at closing, before the owner receives any money. The closing attorney collects payoff letters, sends the funds to each holder and records the releases. If the proceeds fall short, the deal needs a price change or the sale should not go forward.

Can a tax title still be redeemed?

Often yes. Under c. 60, s. 62, redemption is generally allowed until a foreclosure petition is filed, by paying the account plus 8% interest and charges. Because timing matters, check the current status with the city treasurer or the Land Court record before you rely on it.

What does the deed excise tax cost?

Massachusetts charges $2.00 for each $500 of consideration under c. 64D, s. 1, which is about $4.56 per $1,000. On a $190,000 sale that is $760. Barnstable County uses a lower rate. Custom usually puts it on the seller, so put the answer in your contract.

Do I need a license to take an assignment fee?

It depends on how you act. Sections 87PP and 87RR of M.G.L. c. 112 define a broker and bar unlicensed brokerage. Buying as a true principal is different from marketing for another person. Check current text and ask a Massachusetts attorney or the Board before charging a fee.