How Soon Can a Mortgage Company Foreclose?

A mortgage company can foreclose on a property in approximately 6 months from day the default notice was filed. From this information, we can surmise that it takes a foreclosure about nine months before really goes into effect.

In order for the foreclosure process to begin, a person must miss several payments on their mortgage. Every lender is different and some banks may send a default notice if the homeowner misses just one mortgage payment. Some lenders wait for the third late payment before they initiate the foreclosure process. It can range from 30 to 90 days for the foreclosure process to officially begin. If you call the lender because you don’t want your home anymore and tell them you want to foreclose, the process can start right away.

Once a notice of default has been filed, you will have up to 90 days to work out a deal with your lender. This time frame is normal for most banks because it gives people time to come up with money that they need to pay their dues. Unfortunately, this legal process is a very lengthy ones. Banks want homeowners to use all of their resources to save their properties because a bank never wants to be responsible for a property if they can help it. Banks oftentimes want to work with the homeowner to help them save their home. The bank will spend these 90 days calling the homeowner everyday in order to come up with a solution that is right for both of them.

A mortgage company will then file a notice of their intention to sell the property after the time period is up and the homeowner has not paid their dues. After this period has passed, an auction date will be scheduled. In most cases, the date of the auction usually scheduled 90 days after a notice of intent is filed. This gives the homeowner another 90 days to come up with a plan to save their property. This time frame should be used wisely as well as involve a certain amount of interaction with the lender.

A homeowner can have anywhere from 6 months to 9 months to save their property from going into foreclosure. If you think you have to move out right after a house goes into foreclosure, think again. You can use this time to catch up on your mortgage payments, sell your house to prevent it from going into foreclosure, or save up money to buy a new home in the future.