Foreclosure Process

The foreclosure process differs from state to state. Details of the foreclosure process also differ based on who the mortgage lender is if it is a mortgage foreclosure. For property tax foreclosures, the foreclosure process varies based on the city, county or state that is foreclosing.

In general the foreclosure process officially starts when the homeowner in default receives the Notice of Foreclosure from the lender. See Mortgage Foreclosure Process for details of what happens during foreclosure.

Bear in mind that a week before the actual auction date of your foreclosure property, you still have a chance to stop foreclosure. During the whole foreclosure process, there are many things you can do to delay the foreclosure process. You can either do it yourself by calling your bank or you can have a professional do it on your behalf. See, What to do about Bank Foreclosure Delays for more options to delay the foreclosure process.

Lastly, if you are in a position where you owe the bank more than your home is worth, then your mortgage is called an upside down mortgage. In this case, even if you sell your home, you still owe the bank. The best solution for a homeowner with an upside down mortgage is to do a short sale. If you don't know what a short sale is, you should start by visiting What is the Definition of Short Sale Foreclosure. Real estate short sale is a very unique way to help homeowners get out of the obligation of having to owe the bank even though the home is sold or auctioned off. It also saves the homeowner's credit from being thrashed by the foreclosure process.