Many people ask this question that how does foreclosure work … or what can be expected from a mortgage company and when? In this article I will try to explain you about the process of foreclosure to make you understand what is going on and what can be happen. I don’t have all the answers and each case may be handled in a different way but as I have done this for a long time so I can say that this the way how foreclosure works.

Notice to Accelerate

If you miss your first payment the foreclosure process will start and you will receive letters from the mortgage company stating that they haven’t got any payment and to make the payment as soon as possible. These types of letters will be continued for 2-3 months if there is no payment made. Once you will pass the 60 days past due point you will get a Notice to Accelerate from them. In that notice they will demand a payment to make the loan current. In this time they will not accept any partial payment, you have to make the total due amount with any late fees if applicable. They will give you threat by saying that if you don’t pay by a certain day they have the every right to accelerate the due date of the loan and they will start the foreclosure process. They will also say that if they accelerate the loan attorney fees will be included with the loan amount. A sample “Notice to accelerate” letter you can check here by clicking.

The Demand Letter:

If you do not make the payment within the time period which mortgage company given to you in the notice to accelerate letter they will hire an attorney and they attorney will forward you a letter which is called demand letter. The letter is a formal notice where it will be written that if the loan amount is not paid immediately the foreclosure will be filed against you with the court system. Click here to see a sample demand letter.

The Notice of Default:

If you don’t respond to the demand letter of the attorney, the attorney will file the foreclosure with the court. This is called a notice to default. In the court document which you will receive will list the entire debt amount which you need to be paid. In that letter 20-30 days will be given to respond to this judgment notice. Click here to see a sample Notice of Default letter.

The Notice of Sale:

If you do not respond to this notice of default then after the 20-30 days has expired the attorney will file a notice of sale. This notice of sale will set a sheriffs auction date where your house will be sold in an auction. Click here to see a sample Notice of Sale.

This is the entire process how does foreclosure work in a judicial foreclosure state. At anytime in this process before the sheriff’s sale date the process can be stopped or postponed. The main thing is that a mortgage company does not want to sell your house if you do not want them to. They are not in the business of selling house and making money they are here to make money by taking the payments from you. They are always willing to work with you and the key is to come to an agreement with them with something which you can afford.