What the Foreclosure Process Actually Looks Like in Practice

You're underwater on your mortgage payments and feel like you might default on your home? Here's what the foreclosure process actually looks like in practice.

The real estate market is on fire. In July 2020, about 900,000 homes sold in the United States. A darker topic in the real estate market is the foreclosure process.

You might wonder what it is and what it looks like. You’ve come to the right place.

This article will take a look at what the process looks like and what you can expect. Read on to learn more about the foreclosure process to make sure that you’re prepared. 

The Foreclosure Process

You can learn more here about the foreclosure notice of default in North Carolina. A foreclosed home is when your mortgage lender can repossess your house at the time of nonpayment. This means that they can sell your house in order to repay the debts that you owe. 

Every state will have different rules and regulations when it comes to the foreclosure process. Some states even offer exceptions to help you along the process. 

What Happens Next?

When your home goes into foreclosure, you’ll receive a notice of default. This is to let you know that you’re behind on payment and owe them money. 

During this time, you have a specific time period to prevent a foreclosure. This can include attorney charges, interest, penalties, and other fees. 

Once the time passes, the mortgage holder will give you a notice of a foreclosure sale. Some states have a redemption period after the sale where you can reclaim your home. 


The pre-foreclosure stage starts when the lender records the public notice. In order to lose your property, you’ll have a few options.

These options might include:

  • Selling the property in a short sale before foreclosure
  • Signing the deed to the lender 
  • Reverse the default by paying the balance 

When you have a short sale, it’s often lower than what’s owed. The profit from the sale goes to the lender and the sale can only happen if the lender approves it. 

Loan Modification 

Speak with your lender about loan modifications to avoid the different stages of foreclosure. This might allow you to reduce the amount you pay due to financial hardships. 


When you file for bankruptcy, it places an automatic stay in place. Lenders can’t try to collect money until the bankruptcy is dismissed or resolved.

Whether you get to keep your home will be determined based on the type of bankruptcy you choose. Speak with an attorney before you choose this option. 


You’ll often be able to stay in your home until it sells. Once it sells, you’ll receive an eviction notice that you’ll need to leave the property. You’ll often receive enough time to move your items out of the property. 

Understanding the Foreclosure Process

Now that you’ve explored this guide on understanding the foreclosure process, you should have a better idea of what to expect. Take your time deciding what options you have before the process begins. 

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