In this method, foreclosure occurs under the court lawsuits. Permission from court is needed for the foreclosure sale. In some cases, it can take from 6 months to 3 years to complete. So it will be the longest time for you to stay in your home but still it varies from state to state. In the meantime, you can take help from a loan modification expert to help you in such a difficult situation. Suppose you have missed your first mortgage installment on day 1. On day 16, the lender or bank will add up the late payment charges to your outstanding bill. Between day 45 and 60, your bank will send you a demand notice. On day 90, if you have not paid 3 installments in a row to the bank, they will go ahead and file a complaint to court for a foreclosure process. The court will then send you a copy of the complain and summons. You will have 28 days in hand to reply to the summons. After this period, your lender or bank will approach a sheriff to plan for a sale of your property on auction.
Non – judicial foreclosure
This is the method which most of the states are currently using. This process is also widely preferred by most of the lenders and banks. In this process, there is no need to take permission from the court. So, it happens very quickly. Usually, the lender or bank puts your property on auction in 2 to 3 months after sending the legal notice.
So the good news is that you can always slower the foreclosure process and you can also stop it. You must act quickly and should contact any loan modification consultant near you.