Foreclosure process

How do I begin a foreclosure process when the buyer/mortgage holder defaults from the terms of the loan? ( I’m a private lender, I financed the loan for the purchaser )


 Every state has a different cure period before filing for foreclosure, depending on the state the property is in defines this waiting period. 

In most states you must wait a minimum of 90 days before filing a notice of default. You probable want an attorney to consult with and probable want an attorney to handle the documents and filings.

In the US foreclosure takes a minimum of 195 days from the due date of the first missed payment. In some states it can take upwards of a year to go through this process.


You negotiate a repossession, or you hire a real estate attorney to handle your foreclosure and repossession.

First, find out what it’s gonna cost to litigate, and use that figure as the most you’ll pay the defaultee, “cash for keys.”

This happens in my business ever so often. All sorts of circumstances crop up that the buyer is dysfunctional about.

I would basically find out if the borrower was able to catch up, or not, and whether it was worth my time and effort to work with him to catch up, or not.

This is an emotional situation for the buyer, but you should not let it become that way for you.

Doing your best not to escalate and give into your temptation to overreact, and turn into the Incredible Hulk of collection agents, tell the deadbeat wannabee what his options are, and then offer him a better option.

For example, explain that you have an attorney that is happy to screw his credit six ways from Sunday, and do it over the next ten years, or whenever the buyer files for bankruptcy, and you don’t care which happens first.

You inform him that you intend to pursue a foreclosure judgment, a possession judgement, an unlawful detainer judgment, a deficiency judgment, and put all the judgements to collection. Meantime he won’t be able to rent a decent place for the next five years, much less get financing to buy a rake, after you’re done with him.

Or, you’ll offer him $1,500, if he’s out of the house by 5 pm, four days from today, and the place is clean.

So, you give him two options: 1) Face the wrath of Yokee. Or 2) Get money.

This offer expires as soon as your attorney files suit. So, you say, “Tick Tock, Bud. What’s it gonna be?”

Of course realize that it costs money to rent these days. Sometime it requires the first and last month’s rents, plus a deposit equal one month’s rent. Well, if the deadbeat’s got no cash to move, his only choice is to squat and get screwed six ways from Sunday for the next ten years, or you give him the money to solve his problem.

How much money?

$1,500 First month’s rent
$1,500 Last month’s rent
$1,500 Security Deposit
$4,500 Total necessary to bail, not including renting a trailer/truck

So, if the guy gave you $15k to move in, you can probably afford to give him $4,500 back to bail on the deal. Right?

Or you can spend the $9,500 on a foreclosure. It’s your choice.

Thank you. Wow I am learning a lot from this forum. I’m glad I signed in. I appreciate all the responses.

as my experience after 6 months to 12 months after not paying the loan the property will reposes or it depends on the Contract to sell agreement you guys have.

I think you should consult with an attorney before starting a foreclosure process.

The foreclosure process is different in every state.If you are facing foreclosure problem due to missed mortgage payments, you just need to understand the laws and processes that may occur in your state.

If your mortgage holder has stop paying, you must file suit in the court. The homeowner then receives a letter from the court demanding for payment. If the homeowner still can’t pay, you, as a lender, can request to sale the homeowner’s property - usually through an auction.

It depends whether your state is a Judicial or Non Judicial state. Judicial must go through the court system. Non Judicial does not have to go through the court system. It starts with filing an Notice of Default (NOD). Then you must wait minimum of 90 days to file a Notice of Trustee Sale (NTS). Then it’s about 30 days before it goes to auction. Borrower can bring it current anytime before the auction date but never take a partial payment.

If you can’t pay your mortgage you run the risk of the bank foreclosing on your home. It only takes a couple of missed mortgage payments for the bank to start foreclosure proceedings and as well as the risk of losing your home, foreclosure gives you a black mark on your credit rating which is hard to recover from.

Depends on your lender. However, you should have at least 90 days. Usually, there aren’t alot of holidays within a 90 day period.

To start a foreclosure process you should contact a real estate attorney near you and ask them to handle all your process. Trust me this will be the best solution for you because all these house foreclosure are really very complicated.

As foreclosure laws vary from state to state, there is a difference in the foreclosure process too.
So, before starting a foreclosure process, it is necessary to consult with an attorney.
Here I am giving 5 major steps of a foreclosure-

  1. If a lender doesn’t receive at least one mortgage payment, he sends the notice of payment missing to the borrower.
  2. A notice of default is sent to the borrower after 90 days of missed payments.
  3. After 90 days of NOD, the lender publishes the property in newspaper for public auction.
  4. If the property fails to sell in the auction, lender becomes the owner.
  5. Eviction notice served to the existing occupant and demands to vacate the property.