Foreclosure in a Nutshell

A foreclosure begins when the lender on a piece of real property has not received a mortgage payment within a specified amount of time (possibly 3-4 months). The lender will then take steps to recover the money owed, and failing that, "take back" the property. The entire foreclosure process is specified by state and federal law, so the exact timelines and steps required may differ from state to state.

Foreclosure Terms:

Parties to the foreclosure process have their own terminology. It is helpful to remember:

Borrower = Trustor

Lender = Beneficiary

Trustee = Thirt party who will act upon instructions from the beneficiary. This is often a title company or neutral party. Check your state for specific trustee requirements.