What is the Foreclosure Timeline?
Once a loan is at least 90 days in days past due lenders will issue a Notice of Default. Shortly thereafter, your lender will retain an attorney, whose fees you will ultimately be held responsible for, to begin the Foreclosure process and commence a lawsuit. Foreclosure laws vary from state to state however, if the foreclosure is not addressed the house will be sold at auction. The time from Notice of Default to Foreclosure varies from state to state, in accordance with local jurisdictional guidelines.
First, the homeowner purchases a property and takes out a new loan. At some point during the course of the next several months/years, the homeowner begins defaulting in payments to the lender. The lender will send a demand letter to the borrower providing a final 20 days to bring the note current or face foreclosure. After non-payment during this period of 20 days, the lender will post the Notice of Trustee’s Sale at the designated location per the Texas Property Code and a copy will be mailed to the homeowner. The first Tuesday of the following month will result in the property being sold by a trustee who has been appointed if the homeowner has not cured the note. By selling to an investor, filing bankruptcy, or bringing the note current the homeowner can avoid the pending foreclosure.
