| The property foreclosure is different depending on | | | | contains a court date. |
| which state you live in and whether foreclosures are | | | | 3. You and the lender go to court if you don't bring the |
| judicial or NON-Judicial (meaning some use the legal | | | | loan current. |
| court system to foreclose and other don't). | | | | 4. The judge may authorize the sale of your house |
| Here are some "general" steps during the foreclosure | | | | with a writ of execution. The writ of execution will |
| process. | | | | explain the details of how much money is owed and |
| NON-JUDICIAL: | | | | to whom; it is also served to the borrower in person. |
| 1. You stop making payments. | | | | 5. Your house will be auctioned to the highest bidder |
| 2. The bank sends you a "notice of default" letter. It | | | | on the auction date (also known as a Sheriff's Sale), |
| explains that you have defaulted on your loan | | | | who becomes the new owner of your property. |
| agreement and the lender intends to foreclose if you | | | | 6. If your state has redemption rights, you may be |
| don't pay. | | | | allowed to exercise those after the auction and remain |
| 3. You don't bring the loan current. | | | | in your house or regain ownership. |
| 4. The bank sends you a "notice of sale". This has the | | | | 7. After the redemption period is over (or if your state |
| auction date of the property being foreclosed upon | | | | doesn't have redemption rights for the homeowner) |
| and any reinstatement amount. | | | | then you will be evicted according you your state's |
| 5. If you don't pay the reinstatement amount, then the | | | | statutes. |
| house will be auction to the highest bidder who | | | | It is important to remember that each state is different |
| becomes the owner of your house. | | | | and all or parts of the above steps may or may not |
| 6. If your state has redemption rights, you may be | | | | directly apply to your situation. The ONLY way to |
| allowed to exercise those after the auction and remain | | | | know exactly how the foreclosure process works so |
| in your house and/or regain ownership. | | | | you know what to expect is to research the laws and |
| 7. After the redemption period is over (or if your state | | | | processes regarding foreclosure within the state in |
| doesn't have redemption rights for the homeowner) | | | | which the property is located. |
| then you will be evicted according to your state's | | | | Understanding how the foreclosure process works |
| statutes. | | | | can be easily understood if you know where to go |
| JUDICIAL: (applies in mortgage states) | | | | and who to ask. Knowing your rights and the process |
| 1. You stop making payments. | | | | of foreclosure also gives you incredible control and |
| 2. You are sent a Notice of "Lis Pendis" meaning Case | | | | security regarding good decision making in case you |
| pending, which is like a notice of default only it usually | | | | might be wondering what to do next. |