Understanding the Foreclosure Process and Your Options

Going through a foreclosure is never ideal. You plan on making your mortgage payments, but something eventually comes up that throws your plans out the window and causes you to miss those payments. And with foreclosure rates starting to climb in 2023, you may be getting ready to go through the process yourself.

If you’re concerned about going through the foreclosure process, there are some things to learn to become prepared. Read below to learn what happens when you have a foreclosed home.

Payment Default

Payment default is the first thing to happen when you can’t pay a mortgage. Initially, you’ll get a late notice and penalty after your first missed payment. But after three months of no payments, you’ll get a demand letter giving you 30 days to pay your balance.

This process leads to three outcomes: bringing your account current, modifying your account, or your property being sold in foreclosure. The first two will end the process, but the third will lead to the foreclosed home process continuing.

Notice of Default

Mortgage companies must notify a mortgage holder of default before beginning the process. This notice is public and required to give the borrower a chance to remedy their account with their mortgage payment before foreclosure continues.

You’ll have limited time to deal with your default when this happens. Lenders must only wait 120 days (four months) before starting a foreclosure.

If possible, get legal help to handle this process to work out a deal. Visit legalforeclosurehelp.com to learn more.

Notice of Sale

The next step to foreclosure is notifying interested parties of the foreclosure sale. The lender will list the foreclosure auction in the county where the home is.

You aren’t out of luck if you proceed to this point. Borrowers have until the auction date to bring their accounts up to date or work out an arrangement with the lender.

Trustee Sale

Once the auction date comes, it’s time for your home to go to auction and sell to the highest bidder. The seller will calculate the opening bid based on the loan’s value, outstanding liens, unpaid taxes, and other factors.

The seller will conclude the auction after the bidding completes. The winner will get awarded the deed to the property and have the right to take immediate possession.


The eviction process starts after the auction concludes, whether the new owner is a buyer or the bank. The property owners will receive an order to evacuate the home after this point.

The previous homeowner will have several days to complete this process. If time runs out, the local sheriff will assist with the eviction and remove the previous owner’s belongings.

Stay Prepared for the Foreclosure Process

Going through a foreclosure is never a fun process. You’re losing the home you spent so much time in and aren’t sure what to do during the foreclosure process.

But you can prepare beforehand by learning what steps to take and what to expect. Remember this guide if you’re losing a home, and look for help if you need guidance during the process.

Leave a Reply

Your email address will not be published. Required fields are marked *

Previous Article

5 Powerful Ways You Can Serve Others

Next Article
Picking Auto Accident Attorneys

Top 7 Factors to Consider When Picking Auto Accident Attorneys