The #1 thing that most real estate investors and homeowners facing foreclosure want to know is: “what is the timeline for foreclosure?” In other words: “how long does it take?” The answer is that the mortgage foreclosure process and timeline varies from state to state. This process involves the sale of the property by the mortgage holder without court supervision (as elaborated upon below). The court enters a judgement of foreclosure and sale that appoints a referee to auction the property. The foreclosure process takes an average of 5 to 6 months from filing the lawsuit until the confirmation of the foreclosure sale.
Eviction would only occur in a foreclosure case at the end of the court process, after a sheriff’s sale. If you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes, depending on the circumstances.
Lienâ€”A legal claim on property, either a home, other real estate or personal property, held by one person against the owner of the property. 2. The borrower misses one or more payments. Some mortgage contracts require the lender to give “notice of acceleration” to the borrower.
In some cases, the lender may agree to give you an opportunity to sell the property through a realtor rather than in the foreclosure process. The FHA will then pay the lender’s claim and ownership of the property is transferred to HUD who is able sell the home.
Evictionâ€”The legal process for removing a tenant from residential property. The bank will have to ask the court for possession, the court will have to confirm the sale and order the county sheriff to evict the former homeowners and change the locks. Our lawyers have represented debtors in court proceedings across the country, defending state and federal court enforcement actions by secured and unsecured creditors, as well as, when necessary, commencing proceedings under the Bankruptcy Code.