Steps of Foreclosure

Today many people are finding themselves facing foreclosure. The value of their home has dropped, banks are not lending money or allowing many to renegotiate their loans so people are forced to walk away from the loan.

Some banks will allow you three delinquent payments before they will have to start action. The lender will have a trustee apply to the court for a notice of default. After this has been filed you will be given seven days to file for a document called an appearance. Once this document has been filed you will receive another document called a notice of hearing. This document is used by the lender to file for the start of your foreclosure. It is at this time the judge will give you six months to pay your loan in full plus any of the fees that were involved with this action.

Many home owners have no way to pay, so they will have to start the next phase of this process which is the sale of their home. The sheriff or registered mail is the only way the notice of sale or notice to foreclose can be delivered. A physical notice also has to be placed on the property listing the time of the sale. The recorder will place an ad in the local newspapers for three weeks prior to the sale. The final step to this process is the actual sale of your home. This occurs in front of the court house in your community.

The bank is looking to get all of the money back that is still owed on the property plus the fees that have incurred during this process. If the home does not sell, then it goes back to the bank.