What Really Happens During a Foreclosure?

What Really Happens During a Foreclosure?
By the Iuliucci Team at KW Default Solutions

Foreclosure is one of the most stressful and confusing experiences a homeowner can face—but understanding the process can help you act early and take control of your options.

The path to foreclosure isn’t always the same, especially since each state has its own set of laws that shape the timeline and procedures. But generally, the process follows a series of steps. Here’s what you need to know:

 
🚨 Step 1: Missed Mortgage Payments
Falling a few days behind on your mortgage won’t usually send your home into foreclosure. Most lenders offer a short grace period (often up to 15 days) before they tack on late fees.

But after that, if payments continue to be missed, your loan becomes delinquent—and that’s when the clock starts ticking.

Expect warnings from your lender, along with mounting fees and interest. This is the time to reach out and start the conversation about your options. Don’t wait.

 
📬 Step 2: Notice of Default
If you miss about three to six consecutive payments (depending on your loan and state), your lender will likely file a Notice of Default with your county or city recorder’s office.

You’ll receive a copy by certified mail—or even taped to your front door. This official document lays out what you owe to bring your mortgage current.

From here, time is of the essence. You still have options like:

Forbearance
Loan modification
Refinancing
Short sale
But you must act fast. Contact your lender—or better yet, talk to a HUD-approved housing counselor. This stage may already damage your credit score, so it’s critical to address it head-on.

 
⏳ Step 3: Preforeclosure
The period between the notice of default and the actual foreclosure sale is known as preforeclosure. This is your last chance to:

Reinstate your loan by catching up on payments
Negotiate alternatives
Or sell the home before it’s taken from you
If your home is worth less than what you owe, your lender might approve a short sale, where they accept less than the full loan balance. In many cases, this can prevent foreclosure and minimize the impact on your credit.

 
📢 Step 4: Notice of Sale
If no resolution is reached, your lender will issue a Notice of Sale, listing the time and place of the foreclosure auction.

How this is communicated varies by state. In California, for example, the notice must be:

Posted on the property
Published in the local newspaper
Sent by certified mail
Displayed in a public area
At this stage, your right to stop the foreclosure may be limited, but some states offer a redemption period, giving you a last chance to reclaim the property—even after the sale.

 
🚚 Step 5: Eviction
If the home sells at auction, the new owner (often the bank itself or an investor) now has legal possession.

You’ll typically get a few days’ notice to move out. If you don’t vacate voluntarily, law enforcement can step in to enforce the eviction order.

 
You're Not Alone—KW Default Solutions Can Help
At KW Default Solutions, we help homeowners navigate the foreclosure process with dignity and clarity. Whether you're trying to stay in your home, looking for a short sale solution, or want to explore a cash sale before it’s too late—we’re here for you.

📞 Call or text us at (949) 630-0650
🌐 Learn more at https://REOcalifornia.com 

Let’s protect your options and find a solution that works.

 
Sources:

U.S. Department of Housing and Urban Development (HUD.gov)
RealtyTrac
State-specific foreclosure statutes