Each lender have their own procedures as to when to file a foreclosure against a person that is behind in their mortgage payments. Some file foreclosure immediately after one payment, some as long as 3-9 months after missing your first monthly payment.
There are two types of foreclosures normally used in the United States
Most lenders use the non-judicial foreclosure procedure. No courts or lawyers are involved.
Under this procedure normally the lender has the right to sell the property
after completing the foreclosure procedure. The lender, under this procedure can not normally sue for a judgment after the sale. You do not have the right to reclaim the house under any circumstance.
Under a non-judicial foreclosure and the lender has decided to foreclose on you they issue a "Notice of Default/Foreclosure" this document is recorded at the county recorders office where the property
You will receive a copy of this notice
in the mail as well as one will be delivered to your front door.
At this point you now have 90 days to bring the mortgage current, refinance the mortgage or do what ever you want to do to keep your property
. Your lender might entertain the idea of refinancing your mortgage for you at this stage.
Once the 90 day period is over the lender then decides to record a "Notice of Sale" at the county recorders office. You will receive a copy in the mail as well as someone will deliver one to your front door. This notice
will have a sale date and place of sale.
Once this document has been recorded you now have 20 days in which to refinance or cure your foreclosure. Most lenders will not entertain the idea of refinancing their own loan once this document has been issued. Some might, but most will not. At this point the lender is interested in you paying the mortgage off or bringing it current.
At the sale if the property
is sold to someone, they have to get the property recorded in their name so there
is lots of legal work to be done before they officially own the property
This new owner will contact you when all the legal documents are signed and between the two of you select a time for you to move. You might be required to pay rent for the time you stay there but this is between you and the new buyer.
If the property
does not sell then the lender has to get a few legal matters taken care of so they have to wait until the legal matters are completed. This normally take 5-7 business days or less.
If this happens once all the legal matters are taken care of the lender normally hires a real estate agency to take care of their real estate sales.
An agent from the agency will contact you about the date and time of your departure. In some instances they will offer you a sum of cash for you to move.
If you are not required to go to court and has not received documents from a court stating that you must appear. This is probably the procedure being used by your lender.
If the lender decide to use the judicial foreclosure procedure you will be issued a summons to appear in court. The court will set the time and date of appearance as well as when you will have to vacate the property
If you received a document stating that you have to appear in court and a date for you appearance has been set, your lender is probably using this procedure.
This method of foreclosure is used only by a few lenders where both procedures are allowed.
I hope this has been of some use to you, good luck.