What we verified in “Foreclosure: the process step by step”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. According to the CFPB, foreclosure processes differ by state and are generally done in two ways: judicial foreclosure, which goes through a court where the borrower can raise defenses, and non-judicial foreclosure, done without a court action through a series of steps and written notices under a 'power of sale' clause in the mortgage or deed of trust; state processes require that the borrower be notified; after the notices, a public auction is generally held where the home is sold to the highest bidder, which may be the lender; and some states provide a right to mediation before foreclosure.

   Sources 1 · How does foreclosure work?: 'Foreclosure processes differ by state'; 'Judicial foreclosure. This requires that the process go through a court where the borrower can raise defenses'; 'Non-judicial foreclosure. This is done without filing a court action'; 'power of sale'; 'State foreclosure processes require that the borrower(s) be notified'; 'a public auction of your property generally will be held'; 'including your lender'; 'Some states may also provide you with the right to mediation prior to foreclosure' · Checked October 31, 2026

2. According to the CFPB, you can find HUD-approved counseling agencies with its tool or call the HOPE Hotline, open 24 hours a day, seven days a week, at (888) 995-4673; if you have been served with legal papers, you may need an attorney; and military members and veterans can get help from VA or their JAG legal office.

   Sources 1 · How does foreclosure work?: 'Find a Counselor'; 'HOPE™ Hotline, open 24 hours a day, seven days a week, at (888) 995-HOPE (4673)'; 'If you’re facing foreclosure or have been served with legal papers, you may also need to consult an attorney'; 'Military members or veterans can call the Department of Veterans Affairs (VA)'; 'JAG office' · Checked October 31, 2026

3. Under Regulation X (12 CFR §1024.39), the servicer must make good faith efforts to reach you live no later than the 36th day of delinquency and tell you about loss mitigation options, and must send you a written notice no later than the 45th day of delinquency.

   Sources 2 · 12 CFR §1024.39(a): 'no later than the 36th day of a borrower's delinquency'; 'inform the borrower about the availability of loss mitigation options'; (b)(1): 'a written notice'; 'no later than the 45th day of the borrower's delinquency' · Checked October 31, 2026

4. Under Regulation X (12 CFR §1024.41(f)(1)), a servicer may not make the first notice or filing required by law for any judicial or non-judicial foreclosure until the loan is more than 120 days delinquent, unless the foreclosure is based on a due-on-sale clause or the servicer is joining another lienholder's foreclosure.

   Sources 3 · 12 CFR §1024.41(f)(1): 'A servicer shall not make the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process unless: (i) A borrower's mortgage loan obligation is more than 120 days delinquent; (ii) ... due-on-sale clause; or (iii) The servicer is joining the foreclosure action of a superior or subordinate lienholder' · Checked October 31, 2026

5. Under Regulation X (12 CFR §1024.41(f)(2)), if you submit a complete application during that period or before the first foreclosure notice or filing, the servicer may not start foreclosure until it tells you that you are not eligible and the appeal ends or is denied, you reject all options, or you fail to perform under an agreement.

   Sources 3 · 12 CFR §1024.41(f)(2): 'If a borrower submits a complete loss mitigation application during the pre-foreclosure review period ... a servicer shall not make the first notice or filing ... unless: (i) ... not eligible for any loss mitigation option ...; (ii) The borrower rejects all loss mitigation options ...; or (iii) The borrower fails to perform under an agreement' · Checked October 31, 2026

6. Under Regulation X (12 CFR §1024.41(b)(2)), if the servicer receives your application 45 days or more before a foreclosure sale, it must review it promptly and tell you in writing, within 5 business days, that it received it and whether it is complete or incomplete; if incomplete, it must list the missing documents and the date to send them.

   Sources 3 · 12 CFR §1024.41(b)(2)(i): 'If a servicer receives a loss mitigation application 45 days or more before a foreclosure sale'; '(B) Notify the borrower in writing within 5 days (excluding legal public holidays, Saturdays, and Sundays)'; 'either complete or incomplete'; 'the additional documents and information the borrower must submit' · Checked October 31, 2026

7. Under Regulation X (12 CFR §1024.41(c)(1)), if the servicer receives your complete application more than 37 days before a foreclosure sale, it must evaluate you for all available options and give you its decision in writing within 30 days.

   Sources 3 · 12 CFR §1024.41(c)(1): 'if a servicer receives a complete loss mitigation application more than 37 days before a foreclosure sale, then, within 30 days of receiving the complete loss mitigation application, a servicer shall: (i) Evaluate the borrower for all loss mitigation options available'; '(ii) Provide the borrower with a notice in writing' · Checked October 31, 2026

8. Under Regulation X (12 CFR §1024.41(g)), if you submit a complete application after foreclosure has started but more than 37 days before the sale, the servicer may not move for a foreclosure judgment or order of sale, or conduct the sale, until it tells you that you are not eligible and the appeal ends or is denied, you reject all options, or you fail to perform under an agreement.

   Sources 3 · 12 CFR §1024.41(g): 'If a borrower submits a complete loss mitigation application after a servicer has made the first notice or filing ... but more than 37 days before a foreclosure sale, a servicer shall not move for foreclosure judgment or order of sale, or conduct a foreclosure sale, unless' · Checked October 31, 2026

9. Under Regulation X (12 CFR §1024.41(h)), if the servicer receives your complete application 90 days or more before a sale, it must let you appeal a loan modification denial; you have 14 days after the offer or decision to appeal, and the servicer must decide the appeal within 30 days.

   Sources 3 · 12 CFR §1024.41(h)(1): 'If a servicer receives a complete loss mitigation application 90 days or more before a foreclosure sale ... a servicer shall permit a borrower to appeal'; (h)(2): 'within 14 days after the servicer provides the offer'; (h)(4): 'Within 30 days of a borrower making an appeal' · Checked October 31, 2026

10. Under Regulation X (12 CFR §1024.41(e)(1)), if your complete application arrived 90 days or more before the sale, the servicer cannot require you to accept or reject an offer sooner than 14 days; if it arrived less than 90 but more than 37 days before, not sooner than 7 days.

    Sources 3 · 12 CFR §1024.41(e)(1): 'received 90 days or more before a foreclosure sale ... no earlier than 14 days after'; 'less than 90 days before a foreclosure sale, but more than 37 days before ... no earlier than 7 days after' · Checked October 31, 2026

11. Under Regulation X (12 CFR §1024.41(i)), the servicer does not have to repeat these protections if it already complied with them for an earlier complete application of yours and you have been delinquent the whole time since.

    Sources 3 · 12 CFR §1024.41(i), Duplicative requests: 'unless the servicer has previously complied with the requirements of this section for a complete loss mitigation application submitted by the borrower and the borrower has been delinquent at all times since submitting the prior complete application' · Checked October 31, 2026

12. The CFPB warns that if the servicer does not receive your complete application more than 37 days before the sale, it does not necessarily have to review it, though depending on your loan type it may have to consider it under other rules; that the time between the start of foreclosure and the sale depends on your state's laws; and that you can ask your county clerk's office or a legal services provider how foreclosure works where you live.

    Sources 4 · What happens after I complete an application to determine my options to avoid foreclosure?: 'if your servicer doesn’t receive your complete application more than 37 days before your foreclosure sale, your servicer doesn't necessarily have to review your application'; 'your servicer might have to consider your application under other rules'; 'The time between the start of foreclosure and the actual foreclosure sale depends on the laws in your state'; 'check with your county clerk’s office or legal services provider' · Checked October 31, 2026

13. According to the CFPB, if you need to leave your home, do not just walk away; selling is typically better for your money and credit than foreclosure, a short sale or a deed-in-lieu; in a short sale you find the buyer and need your servicer's approval (and that of any other mortgage servicers) to have the difference forgiven, by submitting a complete loss mitigation application; you should understand the tax implications; with a deed-in-lieu you turn the home over to the servicer and move out, and qualifying could mean you do not owe the remaining amount (the 'deficiency'); and these options are typically less expensive, faster and less damaging to your credit than foreclosure.

    Sources 5 · Avoid foreclosure, 'Options for leaving your home': 'But don’t just walk away'; 'Selling your home is typically better for your money situation and your credit than letting it go into foreclosure, doing a short sale, or getting a deed-in-lieu'; 'you are responsible for finding a buyer'; 'You’ll need approval from your mortgage servicer'; 'request a loss mitigation application'; 'tax implications'; 'turn over ownership of your home to your mortgage servicer and move out'; 'an amount called a “deficiency.”'; 'These options are typically less expensive and take less time than foreclosure. They can also do less damage to your credit' · Checked October 31, 2026

14. According to the CFPB, a HUD-approved housing counselor can help you, at no cost, talk with your servicer and build a plan; you may qualify for free legal services through legal aid; servicemembers should consult their local Legal Assistance Office; and if you have a problem with your mortgage you can submit a complaint to the CFPB, which forwards it to the company and works to get you a response, generally within 15 days.

    Sources 5 · Avoid foreclosure, 'Get expert help': 'Housing counselors can develop a tailored plan of action and help you work with your mortgage company, at no cost to you'; 'you may qualify for free legal services through legal aid'; 'If you’re a servicemember, you should consult with your local Legal Assistance Office'; 'we'll forward it to the company and work to get you a response, generally within 15 days' · Checked October 31, 2026

15. Under the Protecting Tenants at Foreclosure Act (Pub. L. 111-22, §702, restored in 2018), whoever takes the property in a foreclosure must give a bona fide tenant a notice to vacate at least 90 days in advance; a tenant with a lease signed before the notice of foreclosure may stay until the lease ends, unless the home is sold to a buyer who will live in it, and even then with the 90-day notice; a tenant without a lease or with a month-to-month lease also gets the 90-day notice; a tenant is bona fide if they are not the owner or the owner's child, spouse or parent, the lease was arm's-length and the rent is not substantially below market (or is subsidized); and the law does not take away longer state protections or the rules for subsidized housing.

    Sources 6 · 12 U.S.C. §5220 note, 'Effect of Foreclosure on Preexisting Tenancy' (Pub. L. 111-22, §702): 'a notice to vacate to any bona fide tenant at least 90 days before the effective date of such notice'; 'under any bona fide lease entered into before the notice of foreclosure to occupy the premises until the end of the remaining term of the lease, except ... a purchaser who will occupy the unit as a primary residence'; '(B) without a lease or with a lease terminable at will'; '(b) Bona Fide Lease or Tenancy'; 'nothing under this section shall affect ... any State or local law that provides longer time periods'; repeal of sunset by Pub. L. 115-174, §304, May 24, 2018 · Checked October 31, 2026

16. Under the Servicemembers Civil Relief Act (50 U.S.C. §3953), if your mortgage predates your military service, a sale or foreclosure for nonpayment is not valid if made during your service or within one year after, except under a court order or a written waiver agreement the law allows; and the court may stay the case if military service materially affects your ability to pay.

    Sources 7 · 50 U.S.C. §3953(a): 'originated before the period of the servicemember’s military service'; (b): 'the court may ... stay the proceedings'; 'materially affected by military service'; (c): 'A sale, foreclosure, or seizure of property ... shall not be valid if made during, or within one year after, the period of the servicemember’s military service except— (1) upon a court order ... or (2) if made pursuant to an agreement as provided in section 3918' · Checked October 31, 2026