How does a Home go into Forclosure

A foreclosure or distressed sale begins when the owner stops making the mortgage payments. After the delinquent owner has missed several payments, the lender will record a notice of default against the property. There are typically three opportunities to buy a foreclosure:

  • After the borrower is delinquent on the mortgage payments but before the trustee sale.
  • At the trustee sale.
  • Or from the foreclosing lender after the trustee sale.
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