How long foreclosure takes varies on many factors including state laws, lender’s policies and the borrower’s available foreclosure defenses. There is no exact way to predict how long foreclosure will take because each borrower’s circumstances are different. In general, a foreclosure takes approximately 3-5 months from beginning to end. However, since there are so many foreclosure filings, lenders don’t have enough staff to handle them so the process is taking as long as a year. During the pre-foreclosure time, the borrower can remain in their home and negotiate a foreclosure prevention option with their lender. Also, an attorney may also be able to negotiate with the lender that the borrower does not have to make any mortgage payments while they remain in their home. Foreclosure prevent options include the following:
- Mortgage modification. A modification extends the term of your loan and reduces your interest rate and payment.
- Deed in lieu of foreclosure. A deed is signed by you back to your lender, and you walk away not owing anything on your mortgage.
- Short sale. You sell your home for less than you owe your lender, subject to your lender’s approval, and walk away owing nothing.
- Reinstatement. You bring your mortgage arrearages current and pay any fees and costs.
- Forbearance. Your lender agrees to a short term payment plan to pay off the arrearages, or they agree to reduce your principal.
- Refinance. If you have equity in your home, you can refinance to a lower interest rate and a fixed mortgage lowering your payment.
If you are facing a foreclosure, you should be aware of the foreclosure basics, procedures to stop foreclosure and your options to prevent foreclosure.
Foreclosure Stages
The foreclosure process works in the following stages:
- The borrower must be in default at least 90 days before the lender can initiate foreclosure proceedings.
- Depending on state law, the proceedings begin with either the lender filing a notice of default in the county where the property is located for a non-judicial foreclosure process, or the lender filing a lis pendens complaint with the court in the jurisdiction where the property is located for a judicial foreclosure proceeding.
- The borrower has a certain statutory amount of time in which to respond and defend themselves. It’s a good idea to hire a foreclosure defense attorney, who will fight the foreclosure and/or stall the proceedings until a solution is worked out with the lender to stop the foreclosure.
- The borrower continues to stay in the property until the borrower is evicted by the lender or the property is sold.
- The lender continues to proceed with the foreclosure process by filing a notice of sale, and scheduling a sale date. If an agreement is made between the lender and the borrower, the lender will cancel the foreclosure proceeding and sale.
- If no agreement is made, then the property is sold at a public foreclosure auction.
- Some states allow the borrower to redeem the property after the sale.
Check your state laws for time tables and redemption laws. Not all states allow redemption.
Benefits of Using a Foreclosure Defense Attorney
A foreclosure defense attorney can explain the foreclosure process time table and procedures to you, and advise you of your legal defenses, obligations and rights. The attorney is experienced in the foreclosure laws, and can defend you in court to help you save your home from going to foreclosure.
