The Five Phases of Foreclosure
1. Unpaid balances; is the first phase of foreclosure, where a "Borrower" has failed to make payments on their mortgage. During this phase, the mortgage lender will begin to take steps to collect the unpaid amount. This may include sending notices and letters, attempting to negotiate a payment plan, or initiating legal action. If a "Borrower" fails to pay the balance, they may face foreclosure.
2. Public announcement; is the second phase of foreclosure, where the mortgage lender will publicly announce the Borrower's" debt and their intention to foreclose. This announcement is typically made in the form of a public notice, which is published in a local newspaper or other public venue.
3. Pre-foreclosure; is the third phase of foreclosure, where the mortgage lender begins the process of taking ownership of the property. During this phase, the lender will contact the "Borrower" to attempt to negotiate a repayment plan. If the "Borrower" is unable to reach an agreement with the lender, the lender may proceed to auction the property.
4. Auction; is the fourth phase of foreclosure, where the mortgage lender will auction off the property to the highest bidder. The auction is typically conducted in a public venue, such as a courthouse or real estate office.
5. Post-foreclosure; is the fifth and final phase of foreclosure, where the mortgage lender will take ownership of the property. The lender may then keep the property or sell it to another party.