The foreclosure process transfers ownership back to the lender when a homeowner can’t pay their mortgage.

Phases in a Foreclosure When the Court is Not Involved

• Notice of Default. The first phase of foreclosure is the Notice of Default.  This is sent to you when the loan is 60 to 90 days overdue. It tells you about the default of the mortgage. It also warns that the lender is about to foreclose.
• Notice of Foreclosure Sale. Next, you receive a Notice of Foreclosure Sale. This happens when the loan is 90 to 120 days overdue. Here, you learn about a sale date. The notice also tells you how much that must be paid to keep the mortgage.
• Foreclosure Sale. The next phase is the foreclosure sale. This occurs when the loan is 150 to 210 days overdue. The lender will state a starting bid that covers the balance, interest, costs and fees. Once the sale is held, the lender typically owns the property.
• Redemption Period. Some states allow a period when you may pay the outstanding balance of the loan to reclaim the property. In most states with redemption periods, you have the right to occupy or sell the property during this period.
• Notice After the Sale. The final phase is the Notice After the Sale. This occurs after the sale or at the end of the redemption period. The Notice After the Sale informs you of the deadline to leave the property. If you do not vacate the property by the deadline, the lender will start the eviction process.

Here’s What Happens When the Court is Involved:

If you are in default, and unable to resolve the situation, your lender will pursue a judicial foreclosure. The lender’s attorney will contact you and try to work out a solution. If that does not work, they will file suit against you.

If you are in this situation, you are not alone. The sooner you take action, the better. Contact your lender and a housing counseling specialist.

GreenPath and our affiliate Homeownership Preservation Foundation operate a foreclosure website and help line at 888-995-HOPE (888-995-4673). When you call, you can get immediate help from a caring, certified housing specialist.

In addition, you can check out the resources and information at www.hud.gov.

---