The biggest foreclosure advice that HUD and practically everybody gives is that you need to stay in contact with your lender. Avoiding your mortgage company when you can’t make your payments can speed up the foreclosure process. If you just need a little more time, talking to your lender will be the best way to get it and avoid foreclosure.
Below is the foreclosure process time line so that you know what to expect:
30 Days–1 Missed Payment. You’ll get a letter or phone call from your lender.
60 Days–2 Missed Payments. You’ll be contacted more frequently by your lender. It’s really important to find a way to make at least one mortgage payment so that you don’t fall three payments behind, which sets off more serious proceedings.
90 Days–3 Missed Payments. Typically, this is when you receive a “Demand Letter” or “Notice to Accelerate.” It will announce how much you’re delinquent and demand payment within 30 days.
120 Days–4 Missed Payments. HUD states that at the end of this period, you’ll be talking to the lender’s attorneys and will incur all attorney costs.
Sheriff’s or Public Trustee’s Sale. The time from the “Demand Letter” to this point can vary by state. The sale can be 2-3 months from that notice. The scheduling of the sale date is not a move-out date, and until it’s sold, you can still make arrangements with your lender.
Redemption Period. This option will depend on the type of foreclosure and the state in which you live. But there can be a redemption period after the sale to pay the outstanding mortgage and the foreclosure process costs so that you keep your home.
Once your home is sold, you will have to move out. Hopefully, it doesn’t come to that, but here are some resources for rentals and rental advice if you need them.
