"Foreclosure" is the process by which a lien holder (bank or mortgage lender) takes back ownership of property because the homeowner fell behind on their mortgage loan payments.
The homeowner defaulted on his/her agreement with the lien holder.
A homeowner is typically foreclosed on after they are 3 or more payments behind.
The amount of time it actually takes for your lender to auction off your property varies greatly.
I have heard of people who have stayed in their for 4+ years without making a mortgage payment and others who were forced out of their homes after just a few months.
While there are tricks to delay foreclosure, it seems to be luck of the draw for the amount of time it takes your lender to pursue foreclosure.
The lien holder owns the property and tries to re-sell the property for as much as they can.
Typically, the amount is far under what the previous home owner paid.
Foreclosure laws differ between states, but can be broken down into one of two categories: Judicial States and Non-Judicial States.
You need to understand that a bank is a business and they make their decisions based upon profit and loss.
Your bank will only agree to a foreclosure alternative if they are losing less money than if they foreclosed on your home.
That's why it's so important to submit your loan modification package perfectly.
As you read the loan modification guides in this free DIY Loan Mod Kit you will begin to understand how you can gear your loan modification package in your best interest.