HUD Articles

The foreclosure process can vary depending on the state, but there are some general steps that all homes go through.

Step 1: Default

The first step in foreclosure is when the borrower defaults on their mortgage payments. This means that they have missed two or more consecutive payments. Once the borrower is in default, the lender will send them a notice of default.

Step 2: Notice of Intent to Foreclose

The next step is when the lender sends the borrower a notice of intent to foreclose. This notice tells the borrower that the lender intends to foreclose on their home if they do not make the missed payments. The notice also gives the borrower the opportunity to reinstate the loan by making the missed payments, plus late fees and other charges.

Step 3: Foreclosure Filing

If the borrower does not reinstate the loan, the lender will file a foreclosure lawsuit against them. This lawsuit will be filed in the county where the property is located.

Step 4: Foreclosure Sale

If the borrower loses the foreclosure lawsuit, the lender will schedule a foreclosure sale. The foreclosure sale is an auction where the property is sold to the highest bidder.

Step 5: Eviction

Once the property is sold at the foreclosure sale, the borrower will be evicted from the home. The borrower has a certain amount of time to vacate the property, typically 30 days.

The foreclosure process can take several months or even years to complete. The exact timeline will vary depending on the state and the specific circumstances of the foreclosure.