| The exact timeline for foreclosure depends on | | | | Step 3: Your Lender Becomes Impatient (1-3 |
| your lender and the state you are located in. | | | | months) |
| Lenders may be very aggressive and try and | | | | At this stage in the timeline for foreclosure if no |
| speed up the process, armed with the knowledge | | | | payment has been received, even after several |
| of the timeline for foreclosure you will be able to | | | | communication attempts, then your lender will |
| stop them and extend the timeline! | | | | contact an attorney to begin the foreclosure |
| Some Basics about the Timeline: | | | | process. |
| When you have defaulted on only one mortgage | | | | KEY TIP #3 |
| payment you will have a grace period in which | | | | When your case is filed by an attorney it |
| you can submit your late payment, typically 15 | | | | becomes public record and loan modification |
| days, and stop any attempts at foreclosure. The | | | | companies will swarm in and promise you the |
| length and charges associated with the grace | | | | world. It is critical, if you have not already done |
| period vary from lender to lender and can be | | | | so, to become knowledgeable about the |
| altered upon request. Some lenders will try and | | | | foreclosure process and the many home saving |
| initiate the foreclosure process immediately | | | | scams currently in operation. |
| following the grace period while others will be | | | | In stage 3 you can still stop the foreclosure |
| more patient. | | | | proceedings by bringing the loan up to date or |
| Key Tip #1 | | | | getting a loan modification. A loan modification is |
| As soon as you miss, or know you are going to | | | | the most effective and least financially demanding |
| miss, a mortgage payment, contact your lender | | | | method of stopping the proceedings, besides |
| and request an extension of the grace period. | | | | paying the full amount you owe. |
| Key Tip #2 | | | | In this stage of the timeline for foreclosure the |
| Avoiding lenders phone calls only makes the | | | | process moves slowly since it is far more costly |
| situation worse. If you have missed a mortgage | | | | for your lender to proceed with a foreclosure |
| payment and avoid speaking to your lender they | | | | than it is to work with you to become current. |
| will try and begin the process quickly. However, if | | | | Step 4 Your House is Sold (3-10 months) |
| they feel you are trying to resolve the situation | | | | If after step 3 you are still behind and have not |
| then likely they will be more patient. | | | | worked out a loan modification then your family's |
| Step 1: Mortgage Payment Missed (Day 0) | | | | home will be sold at an auction. |
| Not everyone who misses a mortgage payment | | | | KEY TIP #4 |
| will end up in foreclosure but this is always the | | | | The last hail marry attempt at remaining in your |
| first step. Immediately following the first missed | | | | home is to either buy your house at auction or |
| payment is the absolute best time to contact | | | | work out a rent-to-own plan with the auction |
| your lender and work towards avoiding | | | | winner. |
| foreclosure. I cannot stress this enough, if you | | | | Step 5: After the Auction (3-10 months + a few |
| missed a payment call your lender. | | | | days) |
| Similarly, if you anticipate that you will be late on a | | | | The laws vary from state to state but the |
| payment inform your lender before hand and you | | | | timeline for moving out of your home is typically |
| will likely be able to negotiate the dismissal of any | | | | less than 20 days. If you get to this point you still |
| late fees. | | | | cannot simply walk away. Under the terms of |
| Step 2: Your Lender Attempts to Contact You | | | | your mortgage you will likely owe the difference |
| (Day 15 typically) | | | | between what your house is sold for and your |
| If you did not contact the lender following the | | | | mortgage. |
| missed payment then your lender will begin trying | | | | Summary |
| to contact you. The timing of this lender-borrower | | | | The entire process begins with one missed |
| contact is typically immediately following the grace | | | | payment and can end in as little as 3 months or |
| period, around 15 days late. The usual contact | | | | as long as a year. There are many steps in the |
| method is a phone call and a notice in the mail. It | | | | timeline for foreclosure but with each step it gets |
| is still easy to avoid losing your home at this point, | | | | harder to stop the process. It is in your best |
| if you cannot make 1 full mortgage payment then | | | | interest to communicate with your lender early in |
| your best chance is to get a loan modification. | | | | the timeline for foreclosure. |