The Foreclosure Process

The following information is a breakdown of the foreclosure process. Each state has specific laws that reflect different processes. You should consult an attorney for advice on your individual situation and not consider the information contained within these pages as legal advice.
Knowing and understanding your legal right and seeking foreclosure assistance can be the difference between keeping or losing your home. The Banks are not in the business of buying and selling property, they do not want your home. They are in the business of financing your home.

Pre-foreclosure Stage

  • Once you have fallen a few months behind, you will receive a Notice to Accelerate letter. After receiving the letter, you will need to pay the past due amount plus the late fees they assess to you. Your may receive a letter stating they have accelerated the due date of your loan and state of the foreclosure process if you are unable to pay.
     
  • If you do not respond to their Notice to Accelerate letter by not paying the amount due on the specified date, the bank will hire an attorney, and then forward you a Demand Letter. The Demand Letter officially notifies you that if your mortgage is not brought current, then the bank will proceed with the foreclosure in the court system. Any unpaid interest and late charges that are added to the loan and attorney fees you will be responsible for; which will make the foreclosure process more expensive to stop later on.​

Foreclosure Lawsuit Stage 

If you have not responded to the Demand Letter by paying the full amount requested that is past due, then, the second stage of the foreclosure process begins.  This is when the bank files a Foreclosure Lawsuit and Notice of Default (NOD) against you.  You will have 20 business days to respond to this judgement.  After responding, a hearing will be set with your county's courthouse.  In most cases, if you do not file an answer or make an appearance in court; then the banks are able to get a default judgment against you and any other signers.  

Notice of Sale Stage

​If you haven't responded to the Demand Letter or Notice of Default; a Notice of Sale ​will be given after twenty (20) business days.  The Notice of Sale is when a home is auctioned off by the court system and typically takes place on the court house steps. The property goes back to the bank as the owner if there are no takers (investors who typically pay off the upfront owed with a money order). After the auction has gone through, and the sale has been confirmed; then the new owner of the property will receive a temporary proof of ownership or a sheriff's deed.  It allows them to take possession of the house. Once the house is auctioned, in most states, the eviction of tenants starts and there is no point of return. If you have not moved out by then it is two (2) to four (4) week process after the sale has been finalized.