Massachusetts situation guide · Updated November 2026

Wholesaling Short Sale Properties in Massachusetts

Wholesaling short sale properties in Massachusetts means contracting to buy a home that is worth less than its loan balance, with the lender agreeing to accept less than it is owed, then assigning that contract. Approval takes time. We found no law written only for wholesalers, so verify current rules.

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The short answer

Can you wholesale a short sale in Massachusetts?

In some cases, yes, but a lender must approve the sale and may restrict assignments. You contract with the owner and work toward approval. Our review found no wholesaler-only law, and broker rules in M.G.L. c. 112 may still apply. Verify current text with a Massachusetts attorney. Treat a short sale as a negotiation with the bank, with a deadline set by the foreclosure calendar.

A short sale happens when the sale price will not cover the mortgage and the lender agrees to take the lower amount. The owner submits a hardship package and the lender reviews the offer. Our short sale wholesaling guide explains the contract steps, and the payoff statement guide shows what to request.

Timing is the hard part. In Massachusetts, a mortgagee using the power of sale must publish notice once a week for three successive weeks, with the first publication at least 21 days before the sale, under M.G.L. c. 244, s. 14. A short sale may need to close before that date. See notices of default and deed in lieu for other exits.

Short Sale Properties in Massachusetts at a glance

Lender role	Must approve the price and often the buyer
Foreclosure notice	Published 3 weeks, first at least 21 days before sale
Wholesaler statute	No wholesaler-only law found
Broker law	M.G.L. c. 112, ss. 87PP and 87RR
Deed excise tax	c. 64D, s. 1 (per $500 of price)
Closings	Typically attorney-run

The opportunity

Why Brockton owners may need a short sale

Brockton, in Plymouth County, has commuter rail access and a housing stock of single-families and multi-families in Campello, Montello and the Highlands. Owners who bought at a peak, borrowed against equity or lost income can end up owing more than a sale would bring. A short sale can spare them a foreclosure, and buyers like the discount a bank may accept. Our motivated seller guide shows how to reach these owners kindly.

Owners under water

A seller who owes more than the home is worth has few clean choices and may want a plan.

A discount for buyers

Lenders sometimes accept less than the balance. Compare it with the ARV method to see if the number works.

Foreclosure pressure

A scheduled sale date gives owners a reason to act and gives you a deadline to manage.

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Lead sources

Where to find short sale leads in Brockton

Foreclosure notices. Published notices of sale show owners who are in trouble. See pre-foreclosure and tax leads.
Referrals from agents. Real estate agents may know owners who cannot sell at list price.
Direct mail. Short, respectful letters work better than pressure. See direct mail for wholesalers.
Expired listings. A home that sat without selling may be priced above what its loan allows. See expired listings.
Attorneys and counselors. Housing counselors and attorneys sometimes meet owners who need options. Be careful about any compensation for referrals.

Your exit

Who buys short sale deals in Brockton

Fix-and-flip investors, landlords and owner-occupants buy short sales when they can wait. Many buyers dislike long approval times, so tell them early. Share what you know about the lender’s timeline and the foreclosure schedule.

Because lender approval can change the price, be honest about what is not final. Our cash buyer guide helps you find buyers who can wait, and the investor-friendly title company guide helps you plan the closing.

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Step by step

How to start wholesaling short sale properties in Massachusetts

Get the facts. Collect the loan balance, payment status and any foreclosure notice dates.
Check value. Pull sales with the comps guide and run the ARV calculator.
Sign a contract. Use an offer that says you may assign it. See writing a wholesale offer.
Send the package. Help the owner submit the hardship package and offer to the lender.
Test the price. Check your margin with the MAO calculator once the lender replies.
Ask for lender terms. Confirm whether the lender allows assignment or a double closing.
Close before the sale. Close through an attorney; see working with an attorney.

Your checklist for wholesaling Short Sale Properties in Massachusetts

Track the published sale date and plan around it.
Ask the lender in writing whether an assignment is allowed.
Do not take any fee from the owner without legal advice.
Tell buyers that approval is not guaranteed.
Budget for the deed excise tax and attorney costs.

A Massachusetts example: a Brockton homeowner who owed too much

Home value	$410,000
Loan balance	$455,000
Lender accepted	$385,000
Repairs estimated	$30,000
Buyer price	$413,000 total
Assignment fee	$13,500

Here is a worked example. A Brockton owner in Campello lost part of his income and fell behind. His house was worth about $410,000, but he owed $455,000, and a notice of sale had been published.

You signed a contract at $385,000, subject to lender approval, and helped him send the hardship package. The lender approved the price after about ten weeks, and the sale closed before the scheduled date.

A rehab investor took the contract and paid you a $13,500 assignment fee. The owner avoided a foreclosure sale and moved out on time. These numbers are illustrations, not market data.

Massachusetts rules to know

Foreclosure timing, broker law and deed tax on short sales

Under M.G.L. c. 244, s. 14, a power-of-sale foreclosure requires published notice in three successive weeks and registered-mail notice to owners and junior holders at least 14 days before the sale. The foreclosing lender must also hold the mortgage through a recorded assignment chain. Those rules shape your calendar. Cure rights and post-sale rights are not covered here, so check current text and ask an attorney.

Be careful with fees. Section 87PP of M.G.L. c. 112 treats paid negotiation for another person as brokerage, and s. 87RR bars unlicensed brokerage. Get advice before you charge an owner anything. Separately, c. 64D, s. 1 puts the deed excise tax at $2.00 per $500. Read our license rules guide and transfer tax guide.

Learn it with a mentor

Work the lender process with us

Short sales reward patience and organization. Mentorship students show us their lender packages, and we help them plan around the foreclosure calendar.

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FAQ

Short Sale Properties in Massachusetts: common questions

Is wholesaling short sale properties in Massachusetts legal?

No wholesaler-only statute turned up. A short sale needs lender approval, and the broker chapter, M.G.L. c. 112, may apply if you charge a fee on another person’s property. Skip owner-paid fees without advice, and have a Massachusetts attorney review each step.

How long does short sale approval take?

It varies by lender and file, and it can run for weeks or months. Because a published foreclosure date may arrive first, you should track the notice calendar from the start. Tell your buyer the timing is not guaranteed so they can decide whether to wait.

What is the Massachusetts foreclosure notice timeline?

A power-of-sale foreclosure under M.G.L. c. 244, s. 14 needs a notice printed once a week for three weeks in a row, the first at least 21 days ahead of the sale, plus registered-mail notice at least 14 days ahead. Verify current text with an attorney.

Can I assign a short sale contract?

Only if the lender allows it. Some lenders restrict assignments or ask who the buyer is, so confirm in writing before you market the contract. Your purchase contract should say that approval is required and that you may assign, subject to lender terms.

Can the owner lose the home anyway?

Yes. If the lender does not approve the sale before the foreclosure date, the sale can go ahead. Post-sale and cure rights can be detailed, so an owner should talk to an attorney or housing counselor. Never promise that a short sale will stop a foreclosure.