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