Foreclosures can happen in any kind of neighborhood and to any home, small or large. A Foreclosure is when a property owner cannot make the principal and/or interest payments on his/her loan, typically leading to the property being seized or sold. Adjustable rate loans, unemployment, credit card debt, medical expenses, and divorce are mostly reasons why someones home would be foreclosed.

Stages of Foreclosure

After three to six months of missed payments, your lender will order a trustee to record a (NOD) Notice of Default. This puts the borrower on notice that he/she is facing foreclosure.This also includes the start of a reinstatement period which typically runs until five days before the home is auctioned off.

A foreclosure sale date is established. The homeowners will receive a Notice of Sales and the notice will be placed on the property. The notice is also published in the County’s local newspapers.

The foreclosure sale occurs on the steps of the County’s courthouse where the home is located. The time and location are designated in Notice of Sale. The property is auctioned to the highest bidder who must pay in cash. There is a deposit upfront. The winner will receive trustees deed to the property.


The opening auction bid is set by the foreclosure lender. The bid is usually equal to the outstanding loan balance, interest, any additional fees, and the attorney fees associated with the trustee sale. If no bids are higher than the opening bid, then the property will be purchased by attorney conducting sale for the lender. Also, if the opening bid is not met the property can be a (REO) Real Estate Owned. This typically can happen since the property is usually worth less than the total amount owed to the bank or lender.

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