|Flickr CC License Taber Andrew|
belongings set out on the lawn? It didn’t happen overnight:
This happens after you’ve missed a payment. In the past, this happened only after several payments were missed. Banks now are trying to move homeowners to action long before the point of no return. So you’ve missed one or several payments, and now the bank officially records the notice of default.
You have the power to stop the foreclosure process anywhere along the way-until five days prior to the auction of your home. How do you reinstate the loan? Bring your loan payments current plus the late fees and whatever penalties are assessed, and you have just reinstated your loan. You’ve stopped the foreclosure.
But what if you can’t pay the back payments and other fees? We’ve come to the third step of the foreclosure process: the bank sets a date of foreclosure. Typically, the date is three
months (about 90 days) after the bank sets the notice of default. You are allowed to live in the house until the actual date of foreclosure. You cannot be evicted or thrown out of
the house until this date. You still have time to come up with that money.
Now the bank prepares the notice of trustee sale. The bank will publish it, The bank then mails you a copy of the notice and physically posts it on the outside of the house. You still
have time to bring the payments current.
We’ve come to the final step: the foreclosure auction sale. If you are still living in the house and it is sold to a bidder at the auction, the winning bidder can have you evicted by the sheriff within 24 hours. If the house doesn’t sell, the bank will show the house just like you would if you were selling the house yourself. The bank may also have you evicted within 24 hours, or the bank may decide to let you stay until the house sells.
The Bottom Line