| If you have stopped making your mortgage | | | | of Default (NOD) is filed by an attorney in the |
| payments, how long you can stay in the home | | | | county recorder's office of your county of |
| becomes a looming question. Depending upon | | | | residence and sent to you via registered and |
| what state you live in, as well as your lender's | | | | certified mail. A NOD gives public notice that you |
| foreclosure procedures, it could take months, or | | | | are delinquent and the lender intends to proceed |
| even years, for the foreclosure process to end in | | | | with foreclosure. |
| an eviction. | | | | Once an NOD is received you have varying |
| Foreclosure is a stressful process. You are | | | | amounts of time to respond, depending on the |
| constantly bombarded with threatening letters | | | | state in which the home is located. You may have |
| from attorneys, your lender, and even your local | | | | as little as 30 days or less in some states, while |
| judicial system, and the process can take time | | | | other states allow up to 12 months or more to |
| before all avenues to collect on the promissory | | | | resolve defaulted mortgages after the NOD is |
| note are exhausted. | | | | filed. |
| When Does a Foreclosure Officially Begin? | | | | When Does the Auctioning Process Begin? |
| The foreclosure process officially begins when you | | | | When the reinstatement period ends, the lender |
| miss your mortgage payment by the due date. | | | | moves forward with assigning a date for auction. |
| For most homeowners, the due date is the 1st of | | | | The timeline of this process also depends on the |
| the month. However, the majority of lenders | | | | state. Some states give Deeds of Trust where a |
| generously give a 5 to10 day "grace period" | | | | trustee, usually a title insurance company or |
| before any late charges are assessed on your | | | | attorney, sets up the auction. Mortgage states |
| account. That means if you fail to make your | | | | must go through a judge to perform a judicial |
| payment by the 1st of the month, a late charge | | | | foreclosure sale. Once the auction date is set, |
| will be added to your account if a payment is still | | | | you, as a homeowner, may still reinstate your |
| not received by the 6th. Failing to meet your | | | | mortgage if you can pay all past due mortgage |
| grace period is usually the first red flag that | | | | payments - plus interest, late fees, and all |
| lenders see for delinquent accounts, and this | | | | attorney fees - which can all add up to be quite a |
| initiates the foreclosure procedure. | | | | significant amount. However, this is your last |
| What are the Initial Stages for Foreclosure? | | | | chance to prevent foreclosure. |
| In an effort to resolve the delinquency, your bank | | | | Once a public auction has been held and a new |
| will send you a late notice. If no contact can be | | | | owner is assigned through a sheriff or trustee |
| made within a week or two after the grace | | | | sale, you may have some time before you are |
| period, the lender moves onto legal notices. Some | | | | escorted out of your home by law enforcement. |
| homeowners try to stave off foreclosure by | | | | All in all, your time from late payment to eviction |
| making false promises to send payment. Although | | | | can take anywhere from about six months to |
| this can buy some time in the beginning, false | | | | well over a year before all legal processes are |
| promises give lenders less flexibility with a | | | | fulfilled. |
| borrower down the road when foreclosure is in | | | | This article is intended for general information. |
| full swing. | | | | Always seek sound financial and legal advice |
| If contacts are futile and a payment is not | | | | before making any financial decision. |
| received by the lender's ultimatum, then a Notice | | | | |