What are the different stages of foreclosure, and what do they mean?

First, various pre-foreclosure procedures are designed to protect the homeowner and to allow time for the homeowner to catch up payments on the loan, while aware that the bank means business about foreclosing.  In most states, these include filing of a Notice of Default in the property records office; followed by a reinstatement period either mandated by law or simply allowed by a bank.  Next, a foreclosure action is filed in the appropriate court where the property is located, to obtain an order for sale.  In some states, this is unnecessary, and the bank can proceed directly to a notice of sale, which states the date on which the property will be sold by a master commissioner or other court-appointed official.  Finally, there is the foreclosure sale, when the property is auctioned off.