What are the basic steps of a home foreclosure?
There are four steps in an institution's foreclosure on a homeowner's single family home. After the homeowner fails to make mortgage payments for one to three or four months, the first step is where the lending institution sends a notice of default to the homeowner giving him a very short period of time in order to come current in the mortgage payments. That completes the first step, is sending the notice, and running of a period of time for the homeowner to come current on their mortgage payment. Step 2 is should the homeowner not bring their mortgage current the lending institution then accelerates the remaining balance due on the mortgage in order that they're able to obtain the property in its entirety in foreclosure or for the entire amount of the balance on the mortgage. After acceleration the lending institution is required to move into step 3 where they adequately advertise the future sale of the homeowner's property to enough potential buyers so that over a period of from 90 to 150 days prior to the foreclosure sale that sufficient interest has been generated such that a good price is obtained for the homeowner's property in a foreclosure sale. Of course, the last step, in many cases, is the foreclosure sale, which is step 4, which happens, typically, in a day.
