Foreclosure Timeline

Foreclosure processes are unique in all 50 states. If you are worried about making your  mortgage payments, then you should look into your state's foreclosure laws. Differences among states range from the lender notices that must be mailed or posted, buyback periods, and the scheduling and bank notices issued regarding the auctioning of the house. Below is a general understanding of the foreclosure timeline used (even with homes which did not qualify under the making home affordable mortgage program, but keep in mind the state where you reside will have its own laws. Few individuals believe they will fall behind on payments and lose their house, they invariably always think they have more time.

Below is a general understanding of the foreclosure timeline with or without being involved with the making home affordable program. Note: Timelines vary by state.

(Day 1+ Late)

1st mortgage payment missed - your mortgage lender will get hold of you by phone or mail and a late charge will be assessed, usually after the payments been late for more than 15 days.

(Day 30+ Late)

2nd mortgage payment missed - your lender is going to start calling you to talk about why mortgage payments have not been made. It is important that homeowners take these phone calls. Talking to your lender and explaining your financial state of affairs and informing them you would like to use the making home affordable program that is available through the government is absolutely critical in solving the problem. Now that your 1st mortgage payment is more than 30 days late and you will receive one 30 day late on your credit, which will in all honesty will crush your credit score. Even if you have established credit, a mortgage late is to be avoided at all cost.

(Day 60+ Late)

3rd mortgage payment missed - once the 3rd payment is missed, you will get a letter from you lender stating the amount you are behind, and that you have 30 days to bring the mortgage current. This is usually called either a demand letter or notice to accelerate. If you do not pay the determined amount or make some other arrangements by the established date, the lender may begin foreclosure proceedings. They are unlikely to accept less than the total due without pre-existing arrangements being made if you receive this certified letter. You do however, still have time to work something out with your lender before the foreclosure process starts.

(Day 90+ Late)

4th mortgage payment missed - you are now approaching the end of a timeline which was permitted in your demand or notice to accelerate letter. When the 30 days ends, if you still haven't paid the full amount or worked our arrangements you'll be referred to your lender's attorney. You will also incur all attorney fees as part of your delinquency.

Depending on where the home is located, the mortgage lender might record a formal notice of foreclosure at the local courthouse, publish details of the debt in the local newspaper, and attend hearings on the case.

(Day 150+ Late)

Public Trustee's or Sheriff's Sale - Sale of the property will often be scheduled by the lenders attorney. This would be known as the day of foreclosure. You could be notified of the date by mail, a notice taped to your door, and/or the property sale could be advertised in a local paper. The time frame between the notice to accelerate or demand letter and the actual foreclosure sale vary by state. Some states may be as quick as 2-3 months although states do vary. At this point your move-out date is near. You have until the sale date to make arrangements with your mortgage lender, or pay in full the amount owed, including attorney fees.

The Redemption Period - Redemption is the period of time after your home has been sold at a Public Trustee's or Sheriff's Sale, but you can still reclaim your home. Paying the full outstanding mortgage balance and all costs incurred during the foreclosure process is the only way to reclaim your property during the redemption period. Many states do in fact have some sort of redemption period, availability is frequently determined by whether the foreclosure is judicial or non-judicial and procedures can vary greatly from state to state.

Important: Staying in contact with your mortgage lender is your single best choice to have a chance of staying in your house and be very careful of the many mortgage companies promising loan modification through the making home affordable mortgage program for a large fee. All dates are estimated, and vary according to your state and your mortgage holder.