The Process of Foreclosure

Pre-Foreclosure

• Borrower misses payment(s).
• Lender attempts to contact borrower.
• Lender sends notice of default (NOD), officially starting the foreclosure process.
• If borrower does not reinstate loan within required amount of time, notice of sale is recorded and published.

Foreclosure/Auction

• Foreclosure sale (e.g., auction,trustee's sale, sheriff's sale) is conducted as published.

REO

• If unsold to another party, ownership of property is involuntarily transferred to lender. The property is now real setate owned (REO).

Foreclosure Can Happen Quickly...or Not

Depending on state laws as well as the loan instrument used (trust deed vs. mortgage), foreclosure proceedings can occur quickly, as in Georgia where the process period is a little more than 30 days. In other states, like New York, foreclosure proceedings can take more than 400 days.

To determine the length of foreclosure proceedings in your state, please visit:

www.foreclosurelaws.org