Foreclosure
Foreclosure is the legal process by which a mortgage lender takes ownership of a home after the borrower stops making payments. The process varies by state — some require court approval (judicial foreclosure), others allow the lender to sell without court involvement (non-judicial foreclosure). Foreclosure permanently ends the borrower's ownership rights to the property.
How the process works
How Does Foreclosure Work?
Foreclosure begins when a homeowner falls behind on mortgage payments — typically by 90 to 120 days. Under federal Regulation X (12 CFR § 1024.41), the servicer generally cannot make the first foreclosure notice or filing on a mortgage on the borrower's main home until the borrower is more than 120 days delinquent. If the borrower sends a complete loss mitigation application first (for forbearance, a loan modification or a repayment plan), the servicer generally has to finish reviewing it before filing.
Once that waiting period passes, the process splits into two tracks depending on the state:
- Judicial foreclosure: The lender files a lawsuit in court. A judge reviews the case, the homeowner can contest it, and if the court grants the foreclosure, the home is sold at a court-supervised auction. This process takes 6 to 24+ months.
- Non-judicial foreclosure: The lender follows procedures written into the deed of trust and state law — typically publishing a notice in the newspaper, waiting a set period, then selling the home at a public auction. This process can be as fast as 37 days in states like Georgia.
What Are the Stages of Foreclosure?
Foreclosure moves through distinct stages, and homeowners have different options at each one:
- Missed payments (Day 1-120): The borrower falls behind. The servicer sends notices and attempts contact. Federal rules generally bar the first foreclosure filing on a main-home mortgage during this period.
- Pre-foreclosure: The servicer files a notice of default or lis pendens. The borrower can still negotiate loss mitigation, sell the home, or cure the default.
- Foreclosure proceedings: In judicial states, this means a court case. In non-judicial states, this means notice publication and a countdown to sale.
- Foreclosure sale: The home is sold at public auction. The lender typically bids the amount owed.
- Post-sale: Some states grant a redemption period where the former owner can reclaim the home by paying the full amount. Others transfer ownership immediately.
Can You Stop Foreclosure Once It Starts?
Yes — at every stage before the sale is finalized. Possible ways to stop foreclosure include paying all past-due amounts to cure the default, negotiating a loan modification, submitting a complete loss mitigation application, filing for bankruptcy, or selling the home (including a short sale with lender approval). Bankruptcy generally triggers an automatic stay under § 362 of the Bankruptcy Code. On covered loans, timing matters for a complete application. One received after the first required foreclosure notice or filing and more than 37 days before a sale generally keeps the servicer from seeking a foreclosure judgment or order of sale, or holding the sale, subject to other conditions. The earlier you act, the more options you have.
State-by-state differences
Foreclosure law varies dramatically by state. The type of foreclosure (judicial vs. non-judicial), the timeline, post-sale redemption rights, and deficiency judgment rules all differ based on where you live.
| State | Key difference |
|---|---|
| New York | Judicial foreclosure only. One of the longest timelines in the country in ATTOM's data. Mandatory settlement conference. 90-day pre-foreclosure notice required. |
| Texas | Non-judicial foreclosure. The shortest average in ATTOM's data for foreclosures completed in the second quarter of 2026. No post-sale redemption for homestead property. |
| California | Non-judicial foreclosure. Homeowner Bill of Rights prohibits dual tracking. Anti-deficiency protection on purchase-money loans. |
| Florida | Judicial foreclosure only. Right to cure up to date of sale. Unlimited homestead exemption (with acreage limits). |
| Georgia | Non-judicial power of sale. No post-sale redemption. 30-day deficiency confirmation window. |
Questions about foreclosure
How long does the foreclosure process take?
It depends on your state. States where the lender can sell without going to court generally move faster than states that require a court case. In ATTOM's data for foreclosures completed in the second quarter of 2026, Texas had the shortest average and Louisiana the longest. Each state's foreclosure guide gives its own figure and says where it comes from.
Can I stay in my home during foreclosure?
Yes. You have the legal right to remain in your home until the foreclosure sale is completed and, in some states, through a post-sale redemption period. You are not required to leave when you receive a notice of default or notice of sale.
How does foreclosure affect my credit score?
Foreclosure typically drops your credit score by 100-160 points and remains on your credit report for 7 years. The waiting period to qualify for a new FHA mortgage after foreclosure is 3 years; for conventional loans, it's 7 years.
What is the difference between judicial and non-judicial foreclosure?
Judicial foreclosure goes through the court system — a judge must approve the sale. Non-judicial foreclosure follows procedures in the deed of trust and state law without court involvement. Judicial foreclosure is slower but gives homeowners more opportunities to contest.
Can the lender come after me for money after foreclosure?
In many states, yes. If your home sells for less than you owe, the lender can seek a deficiency judgment for the difference. However, some states (California, Arizona, Oregon, and others) have anti-deficiency laws that block this on certain types of loans.
Key facts
- For a mortgage on your main home, federal law generally bars the first foreclosure notice or filing until the loan is more than 120 days delinquent (12 CFR § 1024.41).
- FHA mortgage delinquency was 13.64% of loans in August 2026 in HUD's monthly report, which also counts loans already in foreclosure.
- Judicial foreclosure requires a court order. Non-judicial foreclosure does not require a court order.
Related data
- Foreclosure Filings YoY Change →15%, Q2 2026
- Foreclosure Starts vs. Bank Repossessions →4.5 times, August 2026
- FHA Mortgage Delinquency Rate →13.64%, August 2026
A HUD-approved housing counselor is a free adviser, approved by the government, who can go over your options with your mortgage company. Call 800-569-4287 or visit consumerfinance.gov/mortgagehelp.
Sources and method
- CFPB Regulation X — Loss Mitigation Procedures, at consumerfinance.gov
- ATTOM Data Solutions — Foreclosure Market Report, at attomdata.com
- HUD — Avoiding Foreclosure, at hud.gov
- Cornell Law Institute — Foreclosure, at law.cornell.edu
- FRED — Delinquency Rate on Single-Family Residential Mortgages (DRSFRMACBS), at fred.stlouisfed.org
- Consumer Financial Protection Bureau, at consumerfinance.gov
We write with assistance from AI tools. Figures come from the data and sources named on this page.