The Foreclosure Process

• Sometime between day 90 and day 105 after the first missed payment, the lender turns the loan over to its foreclosure department. The lender's attorney files a notice of sale, and the home is subsequently advertised for auction. The timing of this varies from state to state. The homeowner may remain in the home during this time. States with non-judicial foreclosures sometimes have quicker filing times. If the house is sold at auction, a notice to quit is issued to the new owner after the trustee's deed is recorded. This notice gives the former owner approximately three days to vacate the home.
  
  

Eviction

• If the homeowner fails to vacate after a notice to quit has been issued, the new owner can start eviction proceedings. This will give the homeowner five more days to remain in the home while the paperwork is being filed. The homeowner has the right to ask for a trial during this period to fight the eviction. In most cases the trial is a formality, and the former homeowner almost always loses. However, in requesting a trial the homeowner adds an additional 20 days to the amount of time that they can reside in the home. After the court date, the sheriff will post an official notice to vacate in five days. This is the final notice and the homeowner must vacate at this time or be forcibly removed.
  
  

Timing

• As stated previously, timing of the foreclosure is subject to many variables which are in the homeowner's favor. States that have judicial foreclosures often take longer to execute a notice of sale, thereby giving the homeowner additional time. Contacting the lender's attorney before the sale to request more time can give the homeowner an additional month or two in the home. In some cases, the new owners may pay cash up front to the current homeowners if they vacate quickly and leave the home in good order. This is commonly referred to as "cash for keys."
  
  

Finding a Home After Foreclosure

• According to Stephen Ellis, author of "The Foreclosure Survival Guide," having payment-free shelter for many months before the foreclosure auction and after the sale, gives the former owner an opportunity to save some money. This money will be needed to secure new lodging. Some landlords accept renters with low credit scores, however they may require significantly higher deposits. Another housing alternative is renting from a private owner who may have easier qualifying terms.