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 missed payment due date. | | Day 16 - 30 | | Lat 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 is 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, http://www.michigan.gov/mshda/0,1607,7-141-45866_47905-177816--,00.html
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