How Long Does the Foreclosure Process Take?
Mario lost his job when the construction market came to an abrupt halt. Through a series of savings and odd jobs he was able to make the payments until recently. He is worried that the bank will come knocking on his door and ask him to leave. How long does the foreclosure process take?
30-60 days After Missing A Payment You Will Receive A Notice of Acceleration
Approximately 2-3 months after missing your payment, you will receive a Notice of Acceleration or demand letter from the creditor stating that the loan is past due and asking you to contact them to make some kind of arrangement for payments.
90 Days After You Receive the Notice of Acceleration the Creditor Will File A Notice of Default
Approximately 90 days after receiving no payments, the creditor will file a Notice of Default and will have it recorded with the county recorder's office. Approximately 10 days after the Notice of Default is recorded, you will receive a copy of the Notice of Default by certified mail.
90 Days After Notice of Default Is Recorded a Date Will Be Set
90 days after recordation of Notice of Default, a Trustee's sale date will be set and published in the local newspaper once a week for three consecutive weeks. 14 days before the sale date the Notice of Trustee's Sale will be recorded by the county recorder's office.
If There Are No Bidders and The House Reverts Back to the Bank, Ask For Cash For Keys
On the sale date the property will be sold to the highest bidder or revert to the bank. If the bank owns the house it can be in their best interest for them to give you an incentive to leave the house in good condition and "broom clean." This is called "Cash for Keys" and sometimes the bank will cover expenses such as temporary housing and moving transportation as it is in their best interest that the house be in a decent condition. You may need to ask for this program as your bank won't just offer it.