Learn about foreclosures
What is foreclosure?
Foreclosure is the legal process where a lender takes a borrower’s property in order to fulfill a debt.
The Foreclosure Timeline
Day 1 |
Borrower misses payment due date |
Day 16 – 30 |
Late fees are added to payment. Mortgage servicer begins to attempt to make contact. |
Day 45 - 60 |
“Demand” or “breach” letter is sent |
Day 95 – 105 |
Loan is referred to foreclosure department and foreclosure proceedings begin. |
Day 150 - 415 |
Foreclosure auction or sale takes place and home is sold. After the home his sold, some states allow a “redemption period”, where the homeowner can re-purchase the property if they have the money. |
Source: Michigan State Housing Development Authority. Stages of foreclosure. Retrieved January 30, 2008, from http://www.michigan.gov/mshda/0,1607,7-141-45866_47905-177816--,00.html