Foreclosure Timeline and Process

Foreclosure Timeline: What Are The Stages Of A Foreclosure?

Your life can change in an instant: a lost job, a medical emergency, a divorce, a mortgage adjustment, or the effects of hard economic times can leave you unable to make mortgage payments. You know that your house might be in danger of a foreclosure, but you may not be sure how much time you have until the foreclosure process begins, what the stages of a foreclosure are, or if it is too late to stop the foreclosure.

Exact mortgage timelines vary from state to state and some individual mortgage lenders may be more aggressive in others. In fact, average time between receiving a Notice of Default (NOD) and the foreclosure sale can range between two months and ten months – and in some instances the entire foreclosure process may take as long as three years.  However, the basic steps of a foreclosure and the general timeline of a foreclosure are similar across the board.

• View your States Foreclosure Time Lines. Foreclosure Laws and Timelines for all 50 states.

Foreclosure Time Line

Day 1: The borrower misses a mortgage payment. The borrower can stop this first step in the foreclosure process simply by paying the balance due, if possible. If they are unable to pay, they should contact their mortgage lender as soon as possible to keep the company informed of the situation. Especially during the current foreclosure crisis, some lenders will work with families to avoid foreclosure and create a payment plan.

Days 15-Days 30: The lender shows initial concern and adds a late fee to the overdue payment. After a short grace period, the mortgage company will usually contact the borrower either by mail or by phone in order to talk about why the mortgage payment is late. At this time, a late fee will also be added to the regular house payment.

Days 30-90: The borrower is in default and an official letter is sent. A Notice of Default letter arrives by certified mail outlining what is owed and asking for a final resolution. Although the loan is legally in default after 30 days, lenders may give borrowers up to 90 days to right their account especially if they have been in contact with the company regarding their financial situation and possible repayment plans.

Days 90-120: Foreclosure proceedings begin. At this point, the mortgage company will send the loan from their collection department to the legal department, who will in turn contact a local attorney. The foreclosure is made official and public when the mortgage company informs both the county and the homeowner of the coming auction. Even during this period, however, you may stop the foreclosure process through a number of means.

Days 150-300: The house is sold either at an auction or at a foreclosure sale. The homeowner will be informed of the sale day two to four weeks before it takes place. In many cases, the foreclosure may be stopped at any point until the auction if a resolution is found.

• If you are in the process of Foreclosure or maybe facing Foreclosure soon, Consult Your Case for Free with a local certified Foreclosure Attorney to see which legal options you have available.

After the Sale

Some states allow borrowers to buy back their property during a redemption period. However, reclaiming the property involves paying off your mortgage as well as any other accrued interest, late fees, attorney fees, taxes, insurance, court costs, and appraisal fees.

Visit our State Foreclosure Law Resource Center to see the legal constraints for your state, including timeline and redemption information.

                                                                  Continued: Ways to Prevent or Delay Foreclosure -->