This buyer will receive a trustee’s deed once the sale is complete, at which point he becomes the official owner.
The home will be sold at a public auction to the highest bidder, who will have to pay the full amount of the bid immediately. Next comes a notice of sale, which will state that the trustee (the lender) will sell the home at auction within 21 days. If the homeowner hasn’t come up with the money within 90 days of the notice of default, the lender may proceed with the foreclosure. This is the beginning of the formal process. This form will be sent to the mortgagee via a certified letter, and it typically gives a homeowner 90 days to pay off the most recent bill. If a borrower can’t come up with the funds to pay what he or she owes, a lender will issue a notice of default. And it’s rare for lenders to begin foreclosure after just one late mortgage payment. Lenders usually offer alternatives during this period, including different payment plans to help the homeowners get back on track, keep their home, and keep paying their monthly mortgage bill.
Homeowners have to first default on their mortgage, failing to pay their required monthly payments.
So how does the foreclosure process work? Unfortunately it affects hundreds of thousands of Americans every year. Foreclosure isn’t something any homeowner wants to go through.