How does the foreclosure process work?

We get a lot of questions about how the Foreclosure process works… or what can I expect to receive from the Mortgage Company and when? We will try and walk you through the process to hopefully help you understand what is going on and what might happen. We don’t have all of the answers and each case may be handled a little different, but we have done this for a long time and this is how a foreclosure will typically take place.


Notice to Accelerate
Once you miss your first payment the foreclosure process will begin… you will receive letters form the Mortgage Company telling you that they have not received your payment and please remit immediately. These types of letters will continue for 2-3 months if no payment is made. Once you reach the 60 day past due point you will receive a Notice to Accelerate from them. This will demand payment to bring the loan current. At this point they will not accept a partial payment… you must pay the entire delinquent amount plus any late fees. They will threaten you by saying if you don’t pay by a certain day they have the right to accelerate the due date of the loan and initiate the foreclosure. They will also tell you if they accelerate the loan attorney fees will be added to the delinquent amount. Click here to see a sample Notice to Accelerate letter.


The Demand Letter
If you do not respond with a payment by the date the mortgage company established in the notice to accelerate letter they will hire an attorney. The attorney will forward you what is called the demand letter. This letter is formal notice that if the loan is not brought current medially the foreclosure will be filed with the court system.Click here to see a sample demand letter.


The Notice of Default
If you do not respond to the demand letter to the attorney for the mortgage company will file the foreclosure with the court… this is called a notice of default. This Court document you should receive will list the entire debt amount that needs to be paid. It will also give you 20 to 30 days to respond to this judgment notice. Click here to see a sample Notice of Default letter.


The Notice of Sale
if you do not respond to the notice of default after the 20 to 30 period has expired the attorney it will file a notice of sale. This notice or sell will set a sheriffs auction date where your house will be sold at and auction. Click here to see a sample Notice of Sale.


This is the process to foreclosure will follow in a judicial foreclosure state. At anytime in this sequence, before the sheriff’s sale date, this process can be stopped or postponed. The bottom line is the mortgage company does not want to sell your house anymore than you want them to. They are not in the business to own real estate they make their money by you making your payments. They are willing to work something out with you the key is to come to an agreement with them with something that you can definitely afford.



Please tell us your comment on what you have experienced that may be different to what we have outlined. Your comments may help someone else that is in this process.