Foreclosure Timeline - Posted by Paul Carrey

Posted by Glenn-OH on April 13, 2000 at 16:52:48:

My present house:
Previous owner (separated from wife - one state away)bought house in 9/97.
Made 11/97 and 12/97 payments.
New years 1998 - brought wife in to try to reconcile.
1/3/98 Blew his brains out in the Master Bathroom in front of wife. (I guess it didn’t go well)
9/98 Bank decided that maybe they ought to foreclose, so their lawyer filed. (I guess they decided they had a deadbeat owner)
4/15/99 - Sheriff’s auction.
5/19/99 - Made final payment once the deed was prepared by sheriff.

Foreclosure Timeline - Posted by Paul Carrey

Posted by Paul Carrey on April 13, 2000 at 13:25:29:

Understanding that every state has different foreclosure procedures, but I’m wondering what is the “typical” period of time where a bank, finance co., etc. etc. begins their internal foreclosure procedures. I guess what I’m asking is how long after the homeowner stops making payments and the internal procedures are exhausted(i.e. attys are called, letters sent out demanding payment) BEFORE the actual foreclosure notice hits the newspaper. For example, does a homeowner normally miss from 3-4 months worth of payments before the notice hits the paper? More? Less? I’m just looking for a typical, best estimate, ballpark figure. I understand that each lending institution may be different, but I’m just trying to get an idea on the time period, thats all.

Thanks to all for your help.


Definitive answer - Posted by TCB

Posted by TCB on April 13, 2000 at 20:47:26:

Once a loan is 1 month behind it is considered delinquent. If the loan falls 2 payments delinquent, a 30 day demand letter is sent to the mortgator (as well as other notification letters in some states). Once the loan falls 3 payments delinquent, the lender has the legal ability to initiate the foreclosure process, provided no funds have been posted to the loan since the 30 day demand letter was sent. The loan HAS TO BE 3 contractual payments behind when the process starts. To the best of my knowledge, this is a Federal foreclosure initiation process, not State specific.

Banks must… - Posted by Andre (NC)

Posted by Andre (NC) on April 13, 2000 at 20:13:06:

make the decision to charge-off or foreclose by 120 days past due.

I’ll agree with 3 months - Posted by Jim V

Posted by Jim V on April 13, 2000 at 18:07:52:

Although a loan could be considered in default after 1 missed payment, most lenders do seem to initiate the foreclosure proceedings when the third payment is missed. The timeframe after that will depend on the state and individual circumstances.

Jim V

Re: Foreclosure Timeline in New Jersey - Posted by NJDave

Posted by NJDave on April 13, 2000 at 17:18:12:

Once a Borrower defaults to repayment (or other breach of)terms, the process can take as long as 15 - 18 months (depending upon County backlog) until the Notice of Sale is published. More or less depending upon the strategies employed by the foreclosed homeowner.

Usually 3 mos. (nt) - Posted by MDonovan

Posted by MDonovan on April 13, 2000 at 14:43:26: