As you being to fall behind in your payments, you can expect your lender
to take certain steps at certain times. Here's a basic timeline that will
walk you through what happens as you fall behind in payments and move closer
to foreclosure.
Day 1: Your mortgage payment is due but you fail to make
the payment.
Day 16-30: Late charges are applied. The payment processors,
called mortgage servicers, begin to try to contact you and find out why
your payment has not been received. Your file is sent to the Collections
Department.
Day 45-60: The mortgage servicer will send you a letter demand payment
and stating that you are in breach of contract. You are given 30 days to
fix the situation by paying what you owe.
Day 90: A Notice of Default is filed in your county office at the request
of the lender by the trustee. In some states you are 90 days to bring your
account up to date, called the Reinstatement Period.
Day 180: If you still haven't brought your account up to a paid status,
a Notice of Trustee Sale with filed by the trustee as instructed by the
lender.
Day 201: After the Notice of Trustee Sale has been filed for 21 days,
a foreclosure sale can take place at a public auction. Your property will
then either be sold to the highest bidder or may revert back to the lender
for a specified amount.
