Foreclosure
Facing foreclosure? Here is what actually happens next.
Plain English, no sales pitch. Read this before you talk to anyone, including us.
The timeline
Missed payment
The account goes delinquent. Late fees start. Your servicer begins calling and writing.
Notice of Default
The lender formally records that the loan is in default. In most states this is the first public step.
Reinstatement period
A window in which paying what is behind, plus fees, puts the loan back to normal.
Notice of Sale
The sale is scheduled and advertised. The date is now on the calendar and on public record.
Auction
The property is sold at a trustee or sheriff sale. If it sells for more than the total debt, the extra money is surplus and it belongs to you.
Redemption period
Some states allow a period after the sale in which the former owner can redeem the property. Many do not.
Eviction
If you are still in the property after the sale, the new owner starts a possession proceeding.
Stages and timings vary by state. Yours may differ.
Your six options, honestly ranked
Option 01
Reinstate
Pay what's behind. Best outcome if you can.
Option 02
Loan modification or forbearance
Call your servicer's loss mitigation department. Free.
Option 03
Free HUD-approved housing counselor
Genuinely free, genuinely useful.
Find a HUD-approved counselorOption 04
Sell on the market
If you have time and the house shows well, an agent nets you more.
Option 05
Sell to a cash buyer (us)
Less money than retail, but certain and fast when the calendar is tight.
Option 06
Let it go to auction, then claim your surplus
Sometimes the right answer. We can help with that too.
We are option 5 and option 6. We are telling you about options 1 through 4 because they are usually better. Anyone who doesn't mention them is selling you something.
How to spot a foreclosure scam
Warning 01
Anyone who asks for money up front to “save” your home
Warning 02
Anyone who tells you to stop talking to your lender
Warning 03
Anyone who asks you to sign over the deed and “rent it back”
Warning 04
Anyone who guarantees a specific result
Warning 05
Anyone who won't give you a company name, address, and license status in writing
Report them to your state attorney general and the CFPB.
If your sale already happened
There may be money in your name at the county.
When a property sells at auction for more than the total debt against it, the extra money belongs to the former owner. Counties hold it, and most owners are never told.
How surplus funds recovery worksTalk to someone, no charge
Five minutes on the phone will tell you which option actually applies to you. There is no charge and no obligation.