Foreclosure is the result of the borrower defaulting on mortgage payments. It is a complex legal process that can last many months. The overall result of a foreclosure, is that the borrower or the home owner is evicted from the house on account of the inability to make payments. The lender generally recovers only a part of the dues on account of initiating foreclosure proceedings.
What happens during the foreclosure, is that you will receive a certified letter of foreclosure from your lender. This letter is notifying you that they will be setting a court date to get legal permission to exercise their right to repossess your home. At the hearing the court will issue a foreclosure order. The lender now has permission to sell your home at auction.
There is a specified waiting period and after that the lender will publish a legal notice of the foreclosure sale in the paper. This is sometimes called an auction, sheriff’s sale or foreclosure sale. The person with the highest bid is now the owner of the house and can take possession. If you are still in the home it is up to the new owner to perform the eviction.
What happens after foreclosure?
If there is any debt still owed after the sale, the previous homeowner is still responsible for any money that is owed if the sale of the house does not bring enough to pay of the loan. In they can garnish wages if they choose to go that route if the payments are not being made on a timely schedule. And garnished payments is a payment plan.