Basic Foreclosure Process

Foreclosure laws vary in each state. The view the law for your state, visit www.foreclosurelaw.org. The basic process, however, is pretty much the same.

The lender will notify the homeowner mail that the loan is in default. Default means a debtor has not paid a debt which he is required to have paid. The homeowner will be given a certain amount of time to pay the overdue amount plus fees and reinstate the loan. This is paying all past-due installments and bringing the mortgage to a current status. If the homeowner does not comply by the given date, the lender will proceed with the foreclosure by filing a lawsuit to get permission from the court to sell your property. If the court finds for the lender, you will be given a notice of a foreclosure sale. The may arrange a public sale by auction to sell your property to the highest bidder. If the offers do not cover the original loan amount, the lender may submit a credit bid based on the amount you owe on your mortgage. If the property doesn’t sell, the lender will sell it at a later date as a private sale. The homeowner must vacate the property by the time of the foreclosure or he will be evicted by the lender filing a lawsuit of unlawful detainer. This is the act of retaining possession of property without legal right

At any time during the foreclosure process, the homeowner still has the option of paying the overdue amount and the foreclosure costs. Some homeowners may seek out an investor. Many short sale investors enter during this process and try to work with the homeowner and the bank to seek a solution that will help all parties.

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