Despite what you may think, the foreclosure process is usually long and more drawn out than you would believe. When someone buys a property they usually have to borrow money from the bank or another lender. If for any number of reasons the homeowner stops making mortgage payments or gets behind in those payments, they receive a payment reminder from the bank or the lender in

the mail.

Humiliated or embarrassed, say for arguments sake, the homeowner does not respond. They will continue to receive reminders from the bank or lender. This will continue until the bank or lender turns the matter over to the Department who does all of the harassing. These people have a job to do and are paid to pester, annoy and harass the homeowners with both letters and phone

calls. So much fun....not.

After about three months of missed payments, the homeowner will receive an official notice warning that foreclosure proceedings are about to commence. If the homeowners again fail to reply or cannot offer a suitable solution to the bank or lender, the homeowners will get a notice stating the property is in foreclosure and the foreclosure notice is usually posted in the

local newspaper. At this point the bank will not accept any more payments on the loan unless all back payments are made up and the loans reinstated. This begins to pre-foreclosure period.

The Sheriffs office is usually assigned the task of handling the sale. The trustee sets the opening bid on the property and this is a listed in the foreclosure notice. A representative from the Sheriffs office may then visit the property prior to the auction to inspect the property and post the foreclosure notice.

The property is auctioned and sold to the highest bidder. The highest bidder takes immediate possession of the property. The previous owners move out or are evicted. However, in the case when there is no one who bids higher than the opening bid, the bank or lender takes control of the property.

Please note that in some states in the US there is what is called a redemption period. During this period the owner may buy back the property by paying the full amount of the loan plus other costs that have been incurred. The new owner must

therefore wait until the end of this redemption period and cleared by the courts before anything can be done with the property.

There are no winners in the foreclosure process. The owners lose their home and the banks or the money lender loses out on the loan. Foreclosure is the worst possible thing that can happen to your credit score. It is even worse in bankruptcy. Please, if you find yourself in this position and facing foreclosure, contact the bank or lender as soon as possible. It is better to

face the problem sooner than later. Remember the longer you leave it, the fewer your options.