How Long Does Foreclosure take?

It is important to know how long the foreclosure process takes. Once you know how long it takes, it will make it easier to avoid the foreclosure process. One of the issues with foreclosure is there are some rules but they are more of minimums than maximums and we will do our best to point that out.

1. Foreclosure begins once you are in default of your mortgage - now as soon as you are late on your mortgage you are technically in default. If banks worried about the process every time someone was late it would be unmanageable. Banks typically file the required Notice of Default after a home owner has missed 3 consecutive payments or 90 days late.
   
2. Notice of Default - This is a document recorded at the county that your home is located in. If you live in Los Angeles county it is recorded in Norwalk. Banks do not always file this after you have missed 3 payments. They don't really want to take this step and most will work with you to avoid this step. This is the step where the clock starts going.
   
3. Time for Notice of Default - A home owner at any time can bring the mortgage current with all back payments and penalties. Often banks may be able to waive penalties if you have been in dialogue with them and inform them of your situation. The NOD (Notice of Default) states that you have 90 days before they can set a sale date.
   
4. Sale Date - This is where the home owners home can be sold. The date cannot be set any earlier than 21 days after the 90 day time period of the Notice of default. Once again the bank does not want to send the property to a trustee sale and they do not want this to happen. One can still bring the property current throughout this process. Once someone is within 48 hours of the sale date it becomes very difficult to delay the process but it can be done.
   

So a home owner has 90 days where if they have missed payments an NOD will likely be filed, 90 days for the NOD to be active for, and a minimum of 21 days for the earliest sale date. This gives a total time frame of 201 days for a home to foreclosure and be sold. We have seen the process take 9-10 months and banks still work with individuals. The earlier you contact your banks the better or have your real estate professional who is a trained loss mitigation specialist speak with them to delay the process.