What Happens When a Bank Forecloses on a House?
While the foreclosure time frame for banks can vary from state to state, the overall procedure is the same. Bank foreclosures follow a strict set of rules and guidelines.Default NoticeApproximately 30 days after a missed mortgage payment, the bank will send the home owner a certified letter, letting the owner know that he is in default, and foreclosure proceedings will begin.Foreclosure DepartmentWithin 30 to 90 days of being issued a default notice, the home owner’s file moves into the foreclosure department. At this point the file is reviewed and sent to the attorney to sue for foreclosure.Notice of ForeclosureThe home owner is issued a notice of foreclosure typically within 120 days of the first missed payment. In this letter the bank provides the foreclosure auction date.Foreclosure AuctionThe foreclosure auctions occur on the first Tuesday of every month. During these auctions if the bank is not able to obtain an acceptable price on the property, it will keep it as an REO (real es
