In these tough economic times many people are wondering, how does foreclosure work? It's actually not nearly as complicated as it all sounds, at least in most instances. The process can move along fairly quickly, too quickly for those that are about to lose their homes. In fact, when the bank files the paperwork, it may only be a couple of months in some cases. How does foreclosure work? Let's take a look at the basics of the process.

Falling behind:

When payments fall behind, often many months or even years, the bank begins the process. This is how foreclosure works, at least initially. The amount of time the home owner has varies quite a bit. Many banks have different lengths of time that they will allow home owners to fall behind. Generally speaking, there should be no real surprise if the process starts. The bank is obligated to attempt to work out a repayment plan. How does foreclosure work if the bank the bank didn't contact me to work out repayment? Well, it varies, but generally speaking, the papers sent each month asking for payment may fulfill the requirements of the law. You can stop the process and save your home.


How does foreclosure work when the bank decides it's time? The next step will be attorney contact. The bank will typically hire a lawyer to file paperwork with the county court. The lawyer will then contact the home owner and ask for full repayment. They can ask for only the arrears and late fees, or the entire principal amount. It really varies, so it can go either way. This is how foreclosure works.

Court dates:

Foreclosure does work through the court system. Generally speaking, there will be a default hearing at the county courthouse. The judge will view the facts of the case and make a decision. In most cases, the borrower can plead their case, and ask for additional times to raise the funds. This can actually be quite effective. Many judges will grant a small extension of time to allow the home owner a chance to raise the funds needed to save their home. How does foreclosure work if the homeowner doesn't show up to court? Sadly, this happens quite often. In these cased, the judge typically must find in favor of the bank. If more people knew they could still have a chance to keep their home, they would be more likely to show up. If you are facing this situation, and are wondering how to save your home, this is the first thing to look into. This is how foreclosure works.

The home owner's chance:

In court, the home owner has a chance to state their case. In most cases, if the home owner presents a plan to raise the funds the judge will grant them additional time. Home foreclosure works out in favor of the home owner in some cases. Many times you can buy additional time, and in some cases, save your home by proving that the bank wasn't willing to try and work out a repayment plan. If you are facing this, you really should make your case at court. You can save your home this way. This is how foreclosure works. It really does pay off to attend the court proceeding to try to save your home.

The judgment:

How does foreclosure work at this point? Well, that really depends on the judgment. Assuming the bank wins, the judge will give the home owner a certain amount of time to vacate the property. Typically thirty to sixty days will be allotted for removal of personal possessions, but it could be only a week, depending on the circumstances. While there are plenty of laws out ther that govern these types of things, the judge really does have some discretion. It really does vary a lot, so there's no hard rule. This is another thing to consider when wondering, how does foreclosure work?

Public auction:

Generally speaking, the county Sheriff will hold a public auction, in accordance the laws of the procedure. This is a key step in how foreclosure works, and it does happen every day. The auction must be made public. The Sheriff is typically required to inform the public of the sale. This is just a formality in most cases. Simply posting a piece of paper at the courthouse or Sheriff's office is generally sufficient. The idea behind this, is giving the home owner another chance to save their home. That typically doesn't happen, but on rare occasion it does. This is just another step when wondering, how does foreclosure work?

How does foreclosure work if there are no bidders? Well, the bank will pretty much always be there to place a bid. In most cases, the bank winds up getting the home back. It's actually fairly rare when this doesn't happen. This is how foreclosure works effectively and efficiently for the bank. Those interested in purchasing one of these properties have an opportunity to do so at the public auction. Those that want to know, how does foreclosure work during the sale of the home, can simply watch the procedure.


Eviction, if not completed by the home owner, can be carried out by the Sheriff's office. How does this part of foreclosure work? The Sheriff's office can and typically will remove the items from the home. This is one of the more grim ways of how foreclosure works. Personal possessions are generally left outside for a short period of time. If not picked up by the owner, they are disposed of. It seems harsh, but the new home owner should also have access to their home.

If you or someone you know is wondering, how does foreclosure work? You can help them out with the information. It's a grim reality that's facing more and more Americans all the time. The entire process can move along quite quickly.

If you are facing this situation, and are wondering, how does foreclosure work, and how can I stop it? You should know that there are some things you can do to save your home. Just showing up to the court proceeding is a great first step to take.