Our mortgage company is starting the foreclosure process. When will they foreclose?

Pbbbt!  Not for a long time (2-6 months or more).

If I had a dime for every time a client thought they were going to lose the home in the next week because a collector or letter said that they were in pre-foreclosure or going into foreclosure, I would be able to buy a nice stack of Little Caesar’s pizzas for the family tonight.  preforeclosure

Normally, this is how it works in Utah.

1.  Miss 2 mortgage payments.

2.  Receive a Notice of Default that says you are in default of your mortgage and the bank will start foreclosure proceedings.

3.  Miss another 4 mortgage payments (or more).  Note that you’ve now missed 6 mortgage payments, over the last 6 months.

4.  Receive a Notice of Foreclosure or Notice of Trustee’s Sale (which will happen 30 days from now).

5.  Foreclosure.

This is a long, long process.  You can normally miss about 6 mortgage payments before you even get a foreclosure sale notice.  Bankruptcy can definitely stop this at any point in the process.

So when a creditor calls you after your first missed mortgage payment and says that you’re going into foreclosure, you can safely make a raspberry sound into the phone, “Pbbbbt!”