Title: The Mortgage Foreclosure Process in 5 Steps | Millionacres
Headings: The Foreclosure Process in 5 Steps
The Foreclosure Process in 5 Steps
What is a foreclosure?
Why do people default on their mortgages?
The five phases of a foreclosure
Step 1: Payment default
Step 2: Notice of default
Step 3: Notice of trustee's sale
Step 4: Public auction
Step 5: Real estate owned property
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Content: If the borrower has an adjustable-rate mortgage and interest rates rise, the monthly mortgage payment goes up, too. What was once an affordable payment can turn into an overwhelming financial burden. When that happens, the borrower may have no choice but to default. Weak housing prices also come into play. As a last-ditch effort, a borrower may try to avert foreclosure by selling his or her home. However, in a weak housing market, that can be difficult or next to impossible. And if the borrower is underwater (owes more than the house is worth) the sale proceeds may not be enough to pay off the mortgage. In many cases, a borrower who is stretched too thin can keep up the payments when the economy is good. But it’s easy to fall into default as soon as there’s an economic downturn. The five phases of a foreclosure
While the foreclosure process varies by state, it usually follows these five basic steps: