No one wants to be subjected to a foreclosure proceeding, but what happens in real life is that it creeps up faster than they realize and then it is too late for them to do anything about it. Most people think they will find the time and the money to do something about it. Being aware of the usual timeline may help you to avoid this horror.

When the first mortgage payment is missed, the slippery slide has begun. Usually a notice or letter reminding of the due date will be sentout. If, as is frequently the case, it was a question of timing, the homeowner should get the mortgage out as quickly as possible. If not, he should make sure to contact his lender to advise him.

If the borrower misses another payment, the lender will usually make direct contact. At this point, the lender does not know if there is some problem with the borrower, such as sickness, which may prevent him from responding – intelligence hypotheque. The worse action is avoid these phone calls. There is still hope and they will try to help you resolve your payment issue.

The third month in a row that the mortgage is not paid means it is officially in default. The lender will send out a certified letter notifying the borrower of this fact. This kind of letter is usually called a “demand letter” or a “letter to accelerate” and when no effort is made to pay or make some arrangements, the lender will usually begin foreclosure.

Most borrowers have given up on their loan once they have reached this point, but the lender is still willing to negotiate.

The fourth missed month will force the bank to nullify any conditions offered in the letter to accelerate and at this point they have given up on this mortgage. Lawyers are required to draw up the proper paperwork, and the fees of the lawyers will be added to the borrower’s bills. If nothing is done now, the home will be offered at a sheriff’s sale or public trustee sale, depending on the state.

The date that the sale takes place is the official foreclosure date. As a rule, the notice of sale has to be printed in a local paper, notified to the borrower and a notice posted on the home. It is still not too late for the homeowner to take back possession of the home, but it will be extremely expensive.

You may have noticed one common element in each of these steps. Every one of them encouraged the homeowner to contact the lender and talk about their problem. To avoid the final steps, the homeowner should keep in touch with his lender to find any way he can to retain his home.

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