The timeline for foreclosure varies from state to state, but this guide gives you a general day by day overview of the foreclosure process.
On day one of the timeline for foreclosure, you miss a mortgage payment. Maybe it's the first payment you've missed. Maybe it's the fourth. In any case, this is the missed payment that triggers the foreclosure process to start.
On day 16, you get a late charge assessed by the lender. The mortgage servicer also begins to contact you by mail, email, and phone to see about collecting the debt.
Around day 45, the servicer will send you a letter - known as the “demand" or “breech" letter - which tells you that the terms of the mortgage have been violated. At this point, you have a limited amount of time, usually 30 days, to resolve the situation without the foreclosure process actually starting.
About 3 months after you've missed that first payment, the servicer will hire an attorney to start the foreclosure process. Up until this point in the timeline for foreclosure, you may have been receiving bad marks on your credit report for late payments, but because no legal documents have been filed, you don't have a foreclosure on your record. Once the attorney files papers, this is reflected on your credit report.
The servicer's representative will then take the necessary steps which may include filing a document with the County Recorder's Office, going to court, publishing a Notice in the local paper, posting notices in public places, etc. to fulfill the foreclosure.
During the time period that the servicer is fulfilling the legal requirements, you can still bring your mortgage current and get out of foreclosure.
If you are not able to get out of foreclosure by catching up on the payments or selling the house, the property then moves to a foreclosure auction.
After the auction, you may have a period of time (ranging from three days to one year) where you can buy back the home at the auction price. You may be able to live in the home payment free during this period.
The timeline for foreclosure gives you every opportunity to get out of the jam.
If you're in a foreclosure jam and want to find solutions, you need to get your free copy of The Foreclosure Survival Guide . This resource talks about the timeline for foreclosure and offers detailed solutions for homeowners.