Steps of Foreclosure

The steps of foreclosure vary depending on whether the foreclosure is judicial or non-judicial, however many of the steps are very similar. Generally, foreclosure involves the following steps:

1. You (and other lien holders) are legally notified that you are in default.

2. You are given a certain amount of time to cure the default. This term refers to the action of paying the amount that you're in default(number of payments behind that you are plus any lawyer fees and other fees).

3. If you don't pay off this amount in the alloted time, the foreclosure proceeds to the next step: Now you must pay the total amount of the loan.

4. The foreclosure auction sale is advertised.

5. The property is sold to highest bidder.

6. There's a redemption period (its length depends on the state) in which you have the right to pay the loan off and still keep your property.

7. The new buyer gets title after this period has expired.

This is a simple way of explaining the foreclosure process. For a better understanding of it and for tips on avoiding foreclosure, you should take a look at the following link.

Definition of the foreclosure process.

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