The Foreclosure Process Explained
When the property owner defaults on their mortgage payment.
Lis Pendens - For states that use the judicial foreclosure process, a Lis Pendens (a legal notice) is filed against the property. Foreclosure Notice of Sale: Once the notice of default has been served and after the time set forth by each state for remediation, the legal proceedings continue as the lender attempts to acquire the property title. The information included in the notice includes the following: court case number, lender, homeowner, property address, notice of foreclosure and the representing attorney.
Foreclosure Sale - Should the homeowner not meet the court conditions, the court will issue an order for sale and property will be sold at public auction. Foreclosure Notice (Notice of Trustee Sale) - After the notice of default (NOD) period of at least 60-90 days (varies with state laws), the court will issue a foreclosure notice if the borrower has not repaid all past due amounts, late fees and penal.
Should the bidding not meet the lender loan default minimum, the lender will usually set the bid price at that level.