What is the actual foreclosure process?
It’s a two-step process: pre-foreclosure and formal foreclosure. The process is basically the same for every state. See State Foreclosure Process for your state’s specific procedures. Pre-foreclosure 1) You miss a payment (it usually takes 3 or 4 missed payments to kick off a foreclosure process) 2) The bank sends you late notices and, if you fail to respond, they attempt to contact you (in writing or by phone) to resolve situation. 3) You continue to miss payments and, you and the bank, fail to agree upon payment arrangements. 4) The bank invokes the acceleration clause and demands the mortgage or lien be paid in full. Now you are legally obligated to immediately pay the full amount plus back interest, late fees, and any legal fees incurred by the lender. 5) You have made no payments or arrangements acceptable to the bank. Note: Once you reach this stage, the bank will not accept your regular monthly payments but will instead, demand much higher payments to bring your loan current. Fo
