The Home Foreclosure Process – How it Works

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The first thing you should know about how foreclosure works, is that it isn’t something that takes place overnight. Payments must be many months behind. The exact number of payments you can be behind varies by bank. You should know that the bank is obligated, by federal law, to attempt to work out a payment plan with you. If you feel you may be facing foreclosure, contact your bank, you may be able to buy yourself some extra time.

Step 2

How home foreclose works, is that the bank will hire an attorney to file paperwork with the county court. The attorney will then contact you asking for full payment of the amount behind, or possibly, the entire balance. Seldom can people pay off the debt at this point, if they could, they wouldn’t be facing foreclosure in the first place.

Step 3

There will be a default hearing at the county courthouse, this is how home foreclosure works. Many people don’t show up at the hearing, but they should. In many cases, the judge will allow the borrower additional time to come up with the funds. Sadly, most people do not show up, allowing them to lose their home to foreclosure much quicker.

Step 4

The next step in the foreclosure process is the judgment for the lender. The lender is given the default judgment (unless you stop the foreclosure), and then proceeds to a sale of the home. This works out in favor of the bank most of the time, but there are things you can do to stop it.

Step 5

The Sheriff will hold a public auction, in accordance with the home foreclosure procedure. Typically, the foreclosure sale must be published in the paper and posted in a public place (usually the courthouse). The auction will be held, and the property will be sold. The idea behind this, is that the borrower still has a chance to purchase the property and save their home.

Step 6

The next step in the home foreclosure process is eviction. These move much quicker than rental evictions. You should not expect any longer than a week to leave the property. Don’t be afraid to ask for more time if you need it, but realize you aren’t guaranteed it. This is how home foreclosure works.

Step 7

Now that you know the basics of how home foreclosure works, you should know that there are effective ways to stop home foreclosure. 

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