How Long Does It Take a Bank to Foreclose a Home?

The process of foreclosure takes some time. Understanding how it works and the timeframe involved will help you figure out how much time you have to renegotiate your loan and potentially save your home from foreclosure.

It begins when the homeowner stops making payments on the mortgage. Usually after three to six months of missed payments the bank will send the homeowner a Notice of Default (NOD). This notice lets you know that you are officially facing a foreclosure. If you still do not contact your bank or take further action you'll receive a Demand to Accelerate letter. This letter will give you a full 30 days to make arrangements with the bank. If you fail to heed this notice you will incur all attorney fees as part of the delinquency.

The next step of foreclosure is the Public Trustee's Sale. The bank's attorney will schedule a sale of your home. This is the first actual day of foreclosure. You'll probably be given notice by mail, or by a notice on your door. They may begin to advertise the sale of your home in the community and newspapers. You have until the day of the sale to still make arrangements with the bank to save your home, but by this point you're going to be paying attorney's fees on top of everything else.

After the sale of your home there is a redemption period, which gives you a chance to still get your home back. However, at this point you're going to need to pay up front the entire cost of the loan, along with any and all fees incurred.

The amount of time the entire foreclosure takes varies by state and area. If the bank starts the process soon after a missed payment you can expect about five months before your home is sold. The important thing to do is contact your lender as soon as possible before or after missing a payment. They'll be much happier to make arrangements with you to keep your home or lower your payments than to proceed with the foreclosure. Although foreclosure can take a number of months, it's important to contact the bank as soon as possible. This will help you pay the least in back payments and help you avoid incurring attorney's fees.