The Foreclosure Process

Every state has their own laws for foreclosure, but the basic process involves:

• Your lender will notify you, usually by certified mail, that your loan is in default.  

• You will be given a specified amount of time to pay the overdue amount and reinstate your loan.

• If the loan is not paid, then your lender will proceed with the foreclosure by filing a lawsuit to get permission from the court to sell your property.  

• After the grace period has lapsed you will be given a notice of a foreclosure sale.

• Your lender may arrange a public sale by auction to sell your property to the highest offer.

• If the offers are not enough to cover the original loan amount, your lender may submit a credit bid based on the amount you owe on your mortgage.

• If the property is not sold it will be held by your lender and sold at a later date as a private sale.  

• You must vacate the property by the time of the foreclosure or you will be evicted by your lender filing a lawsuit of unlawful detainer.  

At any time during the foreclosure process you will still have the option of paying the overdue amount and the foreclosure costs.

Next Article: Bankruptcy