The foreclosure spiral begins when your loan payment becomes 16 days overdue. At that point, your mortgage servicer will try to contact you to work out a repayment schedule to bring your loan current.
If your first payment becomes 30 days delinquent and the next month’s payment looks doubtful, collection attempts begin in earnest. If your payments fall 90 days behind, the servicer will likely refer your mortgage to an attorney or other entity that will initiate formal foreclosure proceedings.
Here’s a foreclosure timeline:
|Mortgage payment due today, the first of the month. Borrower misses it.|
|Late charge assessed on payment. Mortgage servicer starts attempting to make contact to find out what happened.|
|Servicer sends “demand” or “breach” letter to the borrower pointing out that terms of the mortgage have been violated. Borrower given 30 days to resolve the situation by paying the delinquent amount.|
|Servicer refers loan to foreclosure department. Hires local attorney or other firm to initiate foreclosure proceedings. The servicer’s representative may record a formal notice of foreclosure at the local courthouse, publish details of the debt in the local newspaper, attend hearings on the case and make appropriate court filings.|
|A Process Server will come to your door and serve an adult in your house the foreclosure papers. The paperwork will be in “legalese” and may be difficult to understand for many people. It will explain that the homeowner has 20 days to respond (NOT 45 or 60 days). Call our office and we can give you more information as to this process and whether it is necessary for your particular situation. Note: We are not attorneys and our advice is not to be construed as legal or professional advice.|
|A court hearing will take place where the judge will review the information and make a decision as to the next course of action. Under most circumstances, a Default Judgment is granted and you are now officially in foreclosure. This begins the Redemption Period in Wisconsin.|
|In Wisconsin, there is usually a 180 day Redemption Period before the house can be sold at the Sheriff’s Sale. This is the time to bring the loan current, work out another agreement with the lender, or pay off the loan by refinancing or by selling the property.|
|A Confirmation of Sale hearing is held 10-14 days after the Sheriff’s sale. The judge reviews the process to ensure everything was done according to the law, and if so, the judge signs the Sheriff’s Deed and the successful bidder at the auction (usually the lender) is now the owner of the property.|
|If the foreclosed debtor has not vacated the property voluntarily, the new owner will begin the eviction process that can take anywhere from 10 days to 30 days or more.|