Foreclosure Timeline - Avoid Foreclosure

Foreclosure Timeline
As borrowers fall miss payments, they can expect mortgage companies to react in specific ways at specific times. Here's a look at the foreclosure timeline from missed payments to foreclosure.

DAY 1 It's the first of the month, after the first day you are late. The homeowner misses the payment.

DAY 16-30 A late charge is assessed. The lender that processes the borrowers payments begins to attempt to make contact with the borrower to find out why the payment is late. File is sent to the Collections Department.

DAY 45-60 The mortgage company sends a “demand” letter to the homeowner pointing out that terms of the mortgage have been violated. The borrower is given 30 days to resolve the situation by paying the delinquent amount or working out the default with the mortgage company.

DAY 90 Notice of Default (NOD). Foreclosure proceedings start with a Notice of Default (NOD). The document is recorded at the request of the mortgage company by the trustee and is recorded in the county in which the property is located. The recording of Notice of Default gives “Constructive Notice” to the public.

After the recording of the Notice of Default, the borrower and junior lien holders are given proper notification and the borrower has 90 days to bring their account current. This period is referred to as the Reinstatement Period.

DAY 180 Notice of Trustee Sale. If the borrower does not reinstate their account within the 90 day period, the mortgage company will authorize and instruct the Trustee foreclosure attorneysto record the Notice of Trustee Sale.

DAY 201 After 21 days of the recording of the NOS, a foreclosure sale can take place at public auction. The property may be sold to a third party bidder or revert back to the lender for a specified amount. Stop Foreclosure

Bidders are required to bring cashier's checks or money orders to the sale in an amount equal to or higher than the lenders opening bid. The auctioneer will qualify each bidder and the successful bidder will have to tender full payment at the sale. Stop Foreclosure

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