When the borrower misses their 1st payment, this doesn't mean they are automatically in foreclosure, it does mean the hardship has occurred, but no penalties are assessed at this time.
Sometime between days 16-30 a late charge will be assessed to the borrowers payment and the lender will attempt to make contact with the borrower for an explanation and to discuss what, if any, options the are available to the them. After day 30 the lender will report the 30 day delinquency to the credit bureaus.
The next step the lender will take is to send the borrower a demand letter or, a notice of intent to foreclose on the property. This will normally take place between days 45-60. At this point the calls from the lender will increase as they will be trying to collect on the debt owed. The borrower will be given only 30 days to resolve the delinquent amount. After day 60 the lender will report the 60 day delinquency to the credit bureaus.
Next, the servicer will move the borrowers account from collections to their loss mitigation department and they will retain an attorney or other firm to handle the foreclosure proceedings. This generally is going to happen between days 90-105.The servicer's representative will submit a Notice Of Sale for publication in the legal newspaper.
Iin Georgia, lenders are required to advertise the property in the county newspaper 4 consecutive weeks prior to the foreclosure sale. Again, after day 90 the lender will report the 90 delinquency to the credit bureaus.
Sometime, between days 120-180 a notice of foreclosure sale is filed and the home is scheduled to be sold at auction at the county courthouse where the property is located.
This is the foreclosure timeline in Georgia, but in todays environment, the foreclosure process can often take much longer to complete, but the results are the same.
I hope this helps you better understand the foreclosure process, by understanding the foreclosure timeline you will be better prepared to make the best decisions for your particular situation, and should you decide on a short sale, you can use it to your advantage when it comes to timing and structuring the sale of your home.
It is extremely important to understand these issues so you'll be better prepared to handle this situation should it arise.
Lance Stadler
The Stadler Group
ReMax Center
Direct: 678-985-1234
Fax:
Lance@TheStadlerGroup.com