| Foreclosure procedures are different in all 50 | | | | 2-3 months although states do vary. At this point |
| states. If you are hard-pressed about the | | | | your move-out date is near. You have until the |
| possibility of missing your mortgage loan | | | | sale date to make arrangements with your lender, |
| payments, then you should look into your state's | | | | or pay in full the amount owed, including attorney |
| foreclosure laws. Some of the many differences | | | | fees. |
| include lender notices that must be mailed or | | | | The Redemption Period - Redemption is the |
| posted, buyback periods, and the scheduling and | | | | period of time after your property has been sold |
| lender notices issued involving the auctioning of | | | | at a Public Trustee's or Sheriff's Sale, but you can |
| the property. | | | | still reclaim your property. Paying the full |
| Below is a general understanding of the | | | | outstanding mortgage balance and all costs |
| foreclosure timeline, but keep in mind the state | | | | incurred during the foreclosure process is the only |
| where you reside will have its own laws. Few | | | | way to reclaim your property during the |
| individuals believe they will fall behind on payments | | | | redemption period. Many states do in fact have |
| and lose their house, they always think they have | | | | some sort of redemption period, availability is |
| more time. | | | | frequently determined by whether the foreclosure |
| (Day 1+ Late) | | | | is judicial or non-judicial and procedures can vary |
| 1st mortgage payment missed - your lender will | | | | greatly from state to state. |
| contact you by phone or mail and a late charge | | | | Important: Staying in contact with your lender is |
| will be assessed, usually after the payments been | | | | your single best choice to have a chance of |
| late for more than 15 days. | | | | staying in your house and be very careful of the |
| (Day 30+ Late) | | | | many companies promising loan modification for a |
| 2nd mortgage payment missed - your mortgage | | | | large fee. All dates are estimated, and vary |
| lender is likely to begin calling you to talk about | | | | according to your state and your lending |
| why mortgage payments have not been made. It | | | | company. |
| is critical that homeowners take these phone calls. | | | | Types of Foreclosures |
| Talking to your lender and explaining your financial | | | | There are 3 types of foreclosures which will be |
| state of affairs is absolutely critical to solving the | | | | initiated at this time: judicial, strict foreclosure and |
| problem. Now that your 1st mortgage payment is | | | | power of sale. All three types of foreclosure |
| more than 30 days late and you will receive one | | | | require public notices to be issued and all parties |
| 30 day late on your credit, which will in all honesty | | | | involved to be given notice regarding the |
| will crush your credit score. Even if you have | | | | proceedings. Once homes are sold through an |
| established credit, a mortgage late is to be | | | | auction, families will only have a small amount of |
| avoided at all cost. | | | | time to move out before the sheriff issues an |
| (Day 60+ Late) | | | | eviction order. |
| 3rd mortgage payment missed - once the 3rd | | | | Judicial Foreclosure |
| payment is missed, you will receive a letter from | | | | Every state in the union permits this type of |
| you lender telling you the amount you are behind, | | | | foreclosure, and some demand it. The mortgage |
| and that you have 30 days to bring the mortgage | | | | lender files suit with the judicial system, and the |
| up-to-date. This is usually called either a demand | | | | homeowner will then get a note by mail requiring |
| letter or notice to accelerate. If you do not pay | | | | payment. The borrower then has just 30 days to |
| the determined amount or make some other | | | | respond with a payment in order to fend off |
| arrangements by the given date, the lender may | | | | foreclosure. If the payment is not made after a |
| begin foreclosure proceedings. They're unlikely to | | | | particular period of time, the mortgaged property |
| accept less than the total due without prior | | | | is then sold through an auction to the highest |
| arrangements being made if you receive this | | | | bidder, a sheriff's office or local court will generally |
| certified letter. You do however, still have time to | | | | carry this out. |
| work something out with your mortgage lender | | | | Strict Foreclosure |
| before the foreclosure process starts. | | | | A limited number of states actually permit this |
| (Day 90+ Late) | | | | type of foreclosure as it favors the lenders |
| 4th mortgage payment missed - you are now | | | | tremendously. In strict foreclosure proceedings, |
| nearing the end of a timeline which was permitted | | | | the lender files a lawsuit on borrower who has |
| in your demand or notice to accelerate letter. | | | | defaulted. If the borrower isn't able to pay the |
| When the 30 days ends, if you still have not paid | | | | mortgage within a certain timeline which is |
| the full amount or made arrangements you'll be | | | | ordered by the court, the house goes directly |
| referred to your lenders attorney. You will also | | | | back to the mortgage holder. Generally, strict |
| incur all attorney fees as part of your delinquency. | | | | foreclosures take place only when the debt |
| Depending on where the home is located, the | | | | amount is greater than the appraised value of the |
| lender may record an official notice of foreclosure | | | | property. |
| at the local courthouse, publish details of the debt | | | | Power of Sale |
| in the local newspaper, and attend hearings on the | | | | This sort of foreclosure, also recognized as |
| case. | | | | statutory foreclosure, is permitted by many |
| (Day 150+ Late) | | | | states if the mortgage includes a power of sale |
| Public Trustee's or Sheriff's Sale - Sale of the | | | | clause. Once a homeowner has defaulted on |
| property will often be scheduled by the lenders | | | | mortgage payments, the lender sends out |
| attorney. This would be known as the day of | | | | notifications requiring payments. Once a |
| foreclosure. You could be notified of the date by | | | | recognized waiting period has passed, the lender |
| mail, a notice taped to your door, and/or the | | | | rather than local courts or sheriff's office carries |
| property sale may be advertised in a local paper. | | | | out the public auction. Non-judicial foreclosure |
| The time frame between the notice to accelerate | | | | auctions are oftentimes more expedient, though |
| or demand letter and the actual foreclosure sale | | | | they may be subject to judicial review to ensure |
| vary by state. Some states may be as quick as | | | | the legality of the proceedings. |