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Massachusetts Agencies



If the underlying note is unenforceable, what effect does this have on the enforcement of the mortgage?

Statute of Limitations (twenty year question): The fact that the statute of limitations has run on the note does not prevent the mortgage from being foreclosed. Atwood v. Fiske, 101 Mass. 363 (1869).

Permanent Injunction against Collection (bankruptcy question): A discharge in bankruptcy is essentially a permanent injunction against collection of the indebtedness from the borrower. The discharge, however, does not affect the lien of the mortgage. See First Colonial Bank for Savings v. Bergeron, et. al., 38 Mass.App.Ct. 136, 646 N.E.2d 758 (1995).