Beginning Foreclosure

Quiet possibly the worst thing that can occur for a homeowner is to have their property foreclosed. Home ownership is a great sign of status but it is also expensive. The initial payment you make on a home is followed by consistent payments on a mortgage. Although most homeowners are financially responsible and secure individuals, circumstances arise that can throw anybody into financial trouble.

By definition, foreclosures are a legal process in which a homeowner loses their interest in the mortgaged property due to missed mortgage payments. A forced sale of the property follows, usually at a public auction, in which the mortgage debt is paid off by the proceeds of the sale.


For those homeowners who currently find themselves in some serious financial difficulty, the most common question is, "When does foreclosure begin?" The answer is that most lenders will initiate the foreclosure proceedings after the homeowner has begun to consistently miss their mortgage obligations. Usually after three payments have been missed is when the foreclosure process commences.

The homeowner is informed by the lender or loan source through writing hat they are currently in default. Following this, the lender can request two things: a trustee's sale or a judicial foreclosure, in which the mortgaged property is sold at a public auction. However, it is possible for the homeowner to reverse their default status by paying the overdue payment and the pending payment once the notice of default is recorded. The homeowner is limited, as they have to make this payment no later than a few days before the sale of the mortgaged property.

Credit History

Perhaps the worst thing that can happen to an individual's credit history, foreclosures can have immediate effect. In some sales, the successful bidder of the mortgaged property is allowed to take possession of the home in question immediately. In cases where the former homeowner is unwilling to vacate the premises, a court order can be issued. This court order is called an unlawful detainer and empowers the sheriff to come to the property and evict the former homeowner.