Here's how it happens. Note: Timeline varies by state. See Foreclosure Laws for more detailed information
The Basic Judicial Foreclosure Process.
1) The lender must file a lawsuit against the borrower (file a complaint).
2) The borrower must be notified (certified mail or hand delivered).
3) Defendant’s response to the complaint (usually 21 days,).
A) Borrower must reply to both the court and the attorney representing the lender. The response must deny the claims made by the lender and deny the lender’s allegations for lack of information and knowledge sufficient to form a belief.
B) Failure to reply within the specified period of time results in automatic foreclosure (default judgment ‐ the lender wins the lawsuit.
C) If the deadline is missed then immediately file a “motion for leave to file answer instanter” This is a legal way of saying, “I’m sorry I’m late, Your Honor, but please accept my response anyway."
4) The lender will petition for summary judgment.
5) The judge makes a decision. To foreclose or not to foreclose, that is the question.
6) Judge will issue a court ordered appraisal.
7) Public auction date will be set and the opening bid is usually set at two‐thirds the appraised amount.
8) Public auction completed. Know your states bidding rules. The auction is not flexible. The attorney will schedule a Sale. This is the actual day of foreclosure. You may be notified of the date by mail, a notice is taped to your door, and the sale may be advertised in a local paper. The time between the Demand or Notice to Accelerate Letter and the actual Sale varies by state. In some states it can be as quick as 2-3 months. This is not the move-out date, but the end is near. You have until the date of sale to make arrangements with your lender, or pay the total amount owed, including attorney fees. Time is running out and your options are too. **96.4% of all properties sold at public auction are bought by the lender.**
Redemption Period - after the sale date, you may enter a redemption period. You will be notified of your time frame on the same notice that your state uses for your Sheriff' or Public Trustee' Sale.
Important: Get assistance as early as possible. All dates are estimated and vary according to your state and your mortgage company.
Contact us for foreclosure assistance.