Steps of Foreclosure – Guide to the Steps of Foreclosure

It’s important to remember that foreclosure is a legal process. In America, every legal process requires specific action before anything gets resolved. In this case, there are several specific steps of foreclosure before the home is taken from its owner.

This guide will help the distressed homeowner navigate the steps of foreclosure.

First, there’s pre-foreclosure. This is the period where you’ve missed a payment or two, but the lender has taken no action.

Recommended Steps of Foreclosure here: Get caught up if you possibly can.

Next, there’s the Notice of Deficiency. This is the bank putting you on notice that they’re starting legal action.

Recommended Steps of Foreclosure here: If you can’t get caught up through your own resources, begin exploring options such as selling the house, a short sale, or a Deed in Lieu of Foreclosure.

Then, the bank initiates the foreclosure. This can be a judicial or non-judicial remedy.

Recommended Steps of Foreclosure here: Sometimes you can fight the foreclosure on legal grounds. One man managed to stay in his home for 11 years fighting the bank through legal means. But, he eventually lost.

Next, there is a Sheriff’s Auction where the sheriff sells the house on the courthouse steps. Usually, the bank ends up buying the property for $1 over the deficiency amount.

Finally, there is a Redemption Period. This is where the homeowner has a very short period of time to come up with the amount the home was sold for and buy back the home.

Recommended Steps of Foreclosure here: If you have a last minute solution to save your home, this is your last chance.

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