Many years ago, I was a collector/liquidator for a small bank. Somewhere in my memory I remember a statute or policy, (not sure which now) that if a person causes a substantial loss to the Bank on a previous mortgage (foreclosure deficiency), the Bank can refuse an application for a mortgage based on the fact the individualist caused the bank's loss. FYI- they did not repay it, the statute of limitations has passed on the deficiency, and they did not file bankruptcy. And they more than qualify now for a mortgage.
Does anyone have a similar policy, or is there a Mass Statute I can rely on?
Thanks.