Legal Question in Real Estate Law in Massachusetts

Re: Public Information

It is public so that potential lenders and creditors are made aware of the problem. Moreover, the auction of the property needs to be public so that the lender can get the highest price possible which depending on the sale price, any money in excess of the Mortgage debt, taxes and costs of foreclosure goes to the owner. While it is very rare, it does happen in rare instances.

Re: Public Information

The whole idea of a registry of deeds is so that anyone who has an interest in that property can always check and know who else has an interest in it, in what amount, etc., so they can act accordingly. The bank owns the home and wants everyone else in the world to know that fact, and also how much you owe on the mortgage. (A second lender might give you a second mortgage on part or all of your equity in the prop; it needs to know how much you have, and the records show this.)

If you stop paying mortgage, the bank gives notice to the world it is taking back possession of the property. everybody with an interest needs to know this, or anything else that ever affects or could affect the property. That's why its public. Has to be.