C Bland, Jon Tucker with RE/MAX 100.
A foreclosure consists of many stages. I have worked many short sales, pre-foreclosures, and bank REO sales and listings. Short sales/Preforeclosures can take 4-12 weeks or more. I had one that went almost a year. Bank REO sales are relatively quick, 4-6 weeks.
1. Mortgagee becomes delinquent. Bank will start required legal notifications at 60 to 90 days late.
2. The lender typically will offer various work out options to get the borrow back on track. Workouts are another whole blog topic.
3. A substitute trustee is appointed formally with the court by the lender. They are usually law firms who specialize in foreclosure. 30 days.
4. The substitute trustee petitions court for foreclosure after meeting all legal notification requirements. 30-60 days.
5. The trustee schedules an auction sanctioned by the court, often at the court house. 30 days
6. The public may bid. The lender typically has a reserve equal to the market value or loan note, which ever is higher. Usually the lender/bank buys the home back.
7. The court must ratify the public auction sale. 30-60 days.
8. The bank takes final possession and it is now Real Estate Owned (REO) by the lender.
9. The bank will often list with a Realtor, market on a REO website, or send to auction.
10. Final sale price is negotiated by the lender, but must be approved by the actual investor/owner behind the lender/mortgage servicer. This is another whole blog topic.
11. The contract/offer proceeds like any other real estate transaction, although many banks don't pay the same fees, commissions, seller help, etc. They all have different rules and procedures.
12. The new owner starts making their payments to their new lender/servicer/investor.
I hope that helps. Feel free to email me questions. I would like to work with you if you don't have a Realtor.
Thanks, Jon Tucker, 443.538.4316, TuckerRealty@comcast.net, http://www.JonTuckerHomes.com.