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Real Estate Foreclosure Time line

Foreclosure Timeline

Seller's, Borrower's and even novice Realtor's are often confused by the entire foreclosure process;

Foreclosure has never been simple but with the current backlog of bank owned properties and other pressures, it's become worse than ever. Here is an easy to read foreclosure process time line. It will help one understand the different methods used to handle and a purchase short sale, pre-foreclosures and foreclosed properties. If you have personal situation we can answer it, or get an answer to your question about your options for staying in your home, selling and moving on your schedule while helping you step by step through the process.

1. First month missed payment. This counts as day one for the bank but notice, the homeowner had 30 days just like normal to come up with a payment. They will always remain 30 days ahead of the bank schedule.

2. Second missed mortgage payment...day 30 for the bank.

3. Third missed mortgage payment...day 60 for the bank.  The loan is now seriously delinquent.

4. Notice of Default...usually sent around day 70. If the homeowner doesn't send payment within 30 days, the foreclosure process will begin.

5. Notice of foreclosure...day 100. If the homeowner did not make payment the formal paperwork is now filed with the clerk of the court. An itemized list of fees, charges and payments are included.

6. Notice of Trustee Sale is published. This typically takes place around day 160 or later for the bank.

7. Loan Acceleration. Prior to the auction/sale, the homeowner may still pay back the amount owed plus fees.

8. Second Notice of Sale. The lender is legally obligated to run another notification of the sale prior to the auction.

9. Sale or Auction. This normally takes place roughly 180-190 days from the start of the first delinquency (ie, six months), however, due to the large number of foreclosures and the desire of banks to manage the number of defaults, many homes are now taking as long as two years to complete this entire process resulting in an extensive amount of savings for many homeowners who haven't been required to make payments for up to two years.

Buyers and homeowners often benefit from a short sale. Not only have many homeowners had a change to substantially increase their savings without having made a mortgage payment for months or even years, but banks typically realize greater gains and may save the cost associated with the extended process associated with a full foreclosure.

We have help many many people avoid foreclosure, help their credit, reduce their debt, and get on with their lives.  I would be happy to review your options with you before you make any decisions. After a free consultation you will be able to make informed decisions.

Get the Foreclosure Time Line from our website

Message
Sincerely,  
David Hoshaw
Broker, CRS, GRI, e-PRO
Weichert, Realtors - Hoshaw & Associates
28009 Smyth Drive  Santa Clarita, CA 91355
 
661-287-4466 ext. 226
661-312-1579 mobile



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