Foreclosure is the legal process a lender uses to take a home after missed mortgage payments. You usually have more time and more options than people expect, but acting early matters.
Judicial and non-judicial
- Judicial foreclosure goes through a court and can take many months.
- Non-judicial foreclosure follows a power-of-sale clause in the loan documents and state procedures without a lawsuit, and is often faster.
- Which applies depends on your state and your documents.
The general timeline
- You miss payments, and the servicer contacts you.
- Federal mortgage servicing rules generally prevent a servicer from starting foreclosure until you are more than 120 days delinquent.
- You receive a notice of default or similar notice.
- Foreclosure proceeds under state law, with notices and, in some states, a court hearing.
- The home is sold at auction, and a redemption period may apply in some states.
Options to explore
- A repayment plan or forbearance.
- A loan modification that changes the terms.
- Refinancing, if you qualify.
- Selling the home or a short sale.
- A deed in lieu of foreclosure.
- Bankruptcy, which can pause the process.
Get free help
HUD-approved housing counselors give free or low-cost advice and can help you apply for options with your servicer. Legal aid offices can help with foreclosure defense. Never pay upfront fees to a company that promises to "stop foreclosure," since these are often scams.
Frequently asked questions
Can I be evicted right after foreclosure?
Not immediately in most places. The new owner must follow your state's eviction process, and some protections exist for tenants.
Do I owe money after the sale?
In some states a lender can seek a deficiency judgment for the remaining debt, and in others it is limited or barred.