As a homeowner, you need to know how the foreclosure process works.

The foreclosure timeline.

If you are facing foreclosure, it’s helpful to understand the timeline under which the legal proceeding of foreclosure can take place. As has been mentioned throughout this site, it’s far more important to contact you lender as soon as you run into trouble, rather than depending on a legal timeline to assess your options.

Day 1- Your mortgage payment is usually due on the first of the month. Many borrower will miss this and plan to make payment by the 15th of the month.

Day 16-30 – A late charge is usually assessed on your payment, per the terms of your mortgage note. Your lender or mortgage servicer will usually start contact shortly after the 15th to assess what has happened and why you are late.

Day 45-60- Your lender or mortgage servicer sends a demand or breach (depending on state) letter to the borrower pointing out that terms of the mortgage note have been violated and that the borrower has a short period of time to resolve the situation by paying the amounts due under the default.

Day 90-105- This is when a loan is considered seriously delinquent. Your lender or mortgage servicer will then refer the loan to it’s foreclosure department. If not handled internally, the foreclosure department will hire local counsel or a third party firm to initiate foreclosure proceedings.

State laws vary widely, but the lender or it’s representative will record a formal notice of foreclosure at the local courthouse or public trustee’s office, make the issue of public record by publishing details of the debt in the local newspaper, attend hearings on the case and make appropriate court filings.

Day 150-415- After the above actions are taken, the home is eventually brought to foreclosure sale or auction. Again, individual state laws will dictate how long the time frame is for the sale and possession of the property.

Depending upon the legal structure of the state, borrowers in states with judicial foreclosures retake property titles via the court system. Nonjudicial states are not required to follow the same tedious legal process. Please refer to our resources to determine the legal recourse of your state.
In many states, borrowers are granted a "redemption period" in which they can still redee, the property by paying all sums due. Others states, especially nonjudicial foreclosure states force the former homeowner out of the home immediately following the sale or auction.
 

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