Foreclosure Timeline
Written by SAVE NOW on Tuesday, April 20, 2010Timelines vary from state to state.
First month missed payment - This will be the first point when your lender will contact you by letter or phone. Lenders are extremely back logged, so if you do not hear from your lender, don't assume everything is fine.
Second month missed payment - Your lender is likely to begin calling you to discuss why you have not made your payments. It is important that you take your lender's calls. Talk to your lender and explain your situation along with what you are trying to do to resolve the situation. At this time you still may be able to make one month's payment so that you do not fall three months behind.
Third month missed payment - You will receive a letter from you lender stating the amount that you are delinquent, and that you have 30 days to get current. This is called a "Demand Letter" or Note to Accelerate". If you do not pay the specified amount or make some kind of arrangements by the given date, your lender may begin foreclosure proceedings. They are unlikely to accept less than the total due without arrangements being made. You still have time to work something out with your lender.
Fourth month missed payment - Now you are nearing the end of time allowed in your Demand Letter or Note to Accelerate. When the 30 days ends, if you have not paid the full amount or made arrangements, you will be referred to your lender's attorneys. You will incur all attorney's fees as part of your delinquency.
Sheriff or Public Trustee Sale - The attorney will schedule a sale. This is the actual day of the foreclosure. You may be notified of the date by mail or a notice is taped to your door. The time between the Demand Letter and the actual sale will vary from state to state. You have until the date of the sale to pay in full or make arrangements with your lender.
Important - Stay in contact with your lender, and get assistance as soon as possible. The lender does not want your house. They are not in the real estate business... they are in the banking business. They will do what they can to help, but they have to be kept in the loop.
February 6, 2013 at 6:47 AM
This is a must read! Usually, when an owner finds out that his/her house is about to foreclose, he/she panics and seeks a lawyer’s advice because he/she is not knowledgeable of the situation. This timeline will be a great help for them to know what stage they are currently in and take the necessary actions. Thanks for sharing.
Dominic Rosado