If foreclosure is a process at which step in the process is the mortgage company able to report a foreclosure?

Question

At what point is a mortgage company, legally justified in reporting a foreclosure?

Answer 1

As soon as they start the foreclosure process, you are in foreclosure. When they kick you out of the house and sell it at a sheriff's sale, you have been foreclosed on.

Once they start foreclosure proceedings they can report that the loan is in foreclosure. Prior to that, they report that the loan is in default or 30 days late or 60 days late, etc.

Answer 2

It depends on the state regulations regarding foreclosure where the property is located. Some states have longer cure periods before a foreclosure can be processed.

California, for example, you are in default at 31 days late. In Texas, foreclosure is so common, the first Tuesday of the month is regularly scheduled as a sale date. You're reported in default at 31 days and you could be out on your ear at 65 days.