Title: The 6 Phases of a Foreclosure
Headings: The 6 Phases of a Foreclosure
The 6 Phases of a Foreclosure
Make sure you’re prepared and know the steps
Key Takeaways
Phase 1: Payment Default
Phase 2: Notice of Default
Phase 3: Notice of Trustee’s Sale
Phase 4: Trustee’s Sale
Phase 5: Real Estate Owned (REO)
Phase 6: Eviction
The Bottom Line

Content: When a foreclosed property is purchased, it is up to the buyer to say how long the previous owners may stay in their former home. Once the highest bidder has been confirmed and the sale is completed, a trustee’s deed upon sale will be provided to the winning bidder. The property is then owned by the purchaser, who is entitled to immediate possession. 7 ﻿
Phase 5: Real Estate Owned (REO)
If the property is not sold during the public auction, the lender will become the owner and attempt to sell the property through a broker or with the assistance of a real estate owned (REO) asset manager. 8 ﻿ These properties are often referred to as “bank owned,” and the lender may remove some of the liens and other expenses in an attempt to make the property more attractive. Phase 6: Eviction
The borrower can often stay in the home until it has sold either through a public auction or later as an REO property. At this point, an eviction notice is sent demanding that any persons vacate the premises immediately. 9 ﻿
Several days may be provided to allow the occupants sufficient time to remove any personal belongings.