I am a banker in Ohio. I don't know the process in Massachusetts, but in Ohio you can foreclose from the second mortgage position, but the expectation is if you are the successful bidder at the sale, you will be expected to pay off the first mortgage holder. Something else to consider, the first mortgage holder has the option to bid at the sale to protect their interest in the property. If they, or a third party, are the successful bidder, your mortgage would be stripped from the property, leaving you with only the ability to pursue your "debtor" for repayment. Unless you have the ability to payoff the first mortgage, I wouldn't start the foreclosure yourself. This is based on my experience in Ohio, and you should consult an attorney who practices law in Massachusetts.
