Foreclosure is a process that, when done properly, takes several months from beginning to end. For homeowners hoping to save their homes, this is good news. It means that, with the help of a foreclosure attorney, they may be able to stop the foreclosure.
The first step of the foreclosure process is when the lender must notify local officials as well as the homeowner that they intend to pursue foreclosure. This stage is really more about notification of intent than an actual stage of action.
The next stage is a waiting period, during which negotiations may take place between the homeowner and lender. The homeowner may bring payments current, or the homeowner may pursue outlets for stopping the foreclosure, such as filing for bankruptcy.
Sale of Property
If no agreement is reached between homeowners and their lender or no action is taken to stop the foreclosure, the property is auctioned off. This also involves a notification and waiting period. Homeowners must be notified that the property will be sold as well as the date. They then have until about a week prior to the sale to either reach an agreement with their lender or stop the process. Once the home is sold, it’s no longer possible for the homeowner to reclaim the property and winning bidder becomes the new homeowner. Sometimes, the minimum amount the lender is willing to accept for the home is not met. When this happens, the lender then becomes the owner of the property and is responsible for its sale at its own discretion.