Timeline for Foreclosure

Any time it appears that you will miss a mortgage payment, the timeline for foreclosure becomes an important element to understand. If a mortgage payment remains unpaid, in some states this event starts the clock ticking in a process that could end with you losing your home.

Whether a single missed payment can trigger the foreclosure process depends upon the laws of the individual state, as well as whether the state uses mortgages or deeds of trust to represent sale of a property. A mortgage requires legal action to begin foreclosure, but a deed of trust is subject to a non-judicial process.

Under most circumstances, foreclosure proceedings will begin within three to six months if payments are not resumed. However, in cases where the homeowner remains in close communication with the lender, the foreclosure process can be delayed. Many mortgage lenders will work with homeowners to help restructure their mortgage payments. In fact, the best way to slow the timeline for foreclosure is by maintaining open and honest communication with the mortgage lender.

Once foreclosure paperwork is formally filed, the next step leads toward the house's being auctioned off. Again, even this drastic measure can at times be delayed or prevented through open and honest communication with the lender. The timeframe between filing the papers and the actual sale differs from state to state. After the sale, there are additional differences between states that could allow the owner a period of time to regain ownership of the house. There is also a varying period from state to state between the sale and actual eviction. This is called a redemption period. During this time, the owners can attempt to acquire funds through another loan, refinancing or other methods. Not all states offer a redemption period.

Though foreclosure is a difficult situation to face, ignoring the problems will never help. It is important to acquire as much information as necessary. In fact, sufficient information about foreclosure timelines and other elements of the foreclosure process could make the difference between foreclosing and keeping your home.