The foreclosure process can be confusing. Many individuals are left not knowing exactly how the process works. Here is a month by month estimate of what happens to give you a better understanding of what happens. Remember that each situation is unique.
Month 1
Day 1 – Mortgage payment is late
Day 15 – Late fee charged if not yet paid
Month 2
Day 30 – Collection calls begin, loan is now in default status
Day 45 – Late charges accrue
Month 3
Day 60 – Lender gives deadline to bring all months current
Day 61 – If you have a conventional mortgage, the loan is sent to attorneys for foreclosure to begin
Month 4
Day 90 – Mortgage payments 1-4 are due
Day 91 – If you have a FHA mortgage, the loan is sent to attorneys for foreclosure to begin
Day 100 – Borrower receives acceleration letter from attorneys. ’30 day intent foreclose’
Month 5
Day 130 – Acceleration letter expires. Foreclosure by advertisement runs in the paper for six weeks. The borrower now has that period to pay back all late payments. Attorney fees are added to the arrear of loan
Day 144 – Occupant of the property will be served with notice of foreclosure
Month 6
Day 174 – Final day to pay back arrears
Day 175 – Sheriff’s sale occurs at the courthouse in county where property is located
Redemption Period
The redemption period usually is 6 months long, there may be exceptions. During this period the owner has a couple of options, they can either sell the house or refinance to try and remain in the property.
Day 355 – If the loan is not paid off in full or possession is not kept, the owner must surrender the property
As you can see the process takes close to a year. If you are behind on payments, the best thing to do and do it right away is contact your lender. They will work with you to restructure or modify the loan. The longer you wait, the less and less chance you have of the lender doing so.
Don’t sell yourself short!
If you are finding yourself falling behind on your home, YOU have options! Better Homes and Gardens Agents can help guide you through this process and help you make a smart decision. We offer a FREE 30 minute private and confidential consult to understand your options and pro’s and con’s.
We work directly with the dedicated team at Nycklemoe Law Office PLLC where Short Sale negotiation is their primary focus. They can save you some of the stress and greatly increase your odds of a successful sale.
If you’d like to set up an appointment or have a question. Please contact us here.
