Foreclosure 101: Step By Step – The Process of Foreclosure:

Each state has its nuances on the process of foreclosure: but pretty much it boils down to two ways foreclosure can happen:

Judicial Foreclosure: (Time Period – 10 to 11 months)

1. Homeowner fails to make payments for three consecutive months.
2. Lender will transfer the matter to an attorney firm.
3. The legal firm will file a Notice of Default in the county court.
4. A notice of default will be published in the County Legal News for four consecutive weeks for public information.
5. At the end of four weeks, the house will be auctioned off to the highest bidder at the steps of county court house.
6. The homeowners is given six months to bring their account current and pay off the lender / investor.
7. If the homeowner succeeds in refinancing or selling the house or some how raises the enough cash to pay the mortgage off, they can still save the house in this six-month window of time.
8. After six months, the bailiff from the courthouse will come the homeowner house and evicts the residence and change the locks.
9. The house is now officially foreclosed and belongs to the bank or the investor who purchased the house during the courthouse auction.

Non-Judicial Foreclosure: (Time Period – 4 to 5 months)

1. Homeowner fails to make payments for three consecutive months.
2. Lender will transfer the matter to an attorney firm.
3. The legal firm will file a Notice of Default in the county clerk office.
4. A notice of default will be published in the County Legal News for four consecutive weeks for public information.
5. At the end of four weeks, the house will be auctioned off to the highest bidder at the steps of county court house.
6. The eviction process happens within 3-4 days after the auction and the property reverts back to the lender or the investor who bought the house at auction.