How far into a loan term does a foreclosure typically take place?

Question

If someone has a 30-year mortgage, can foreclosure take place at year 29 or does the equity in the house at that point take care of it?

Is foreclosure only possible when there is below 50% equity in a house?

I am just trying to get an idea of length into a loan that foreclosure takes place, as opposed to rates per 1,000 loans. I can't find this information anywhere. If someone has info how the lien process works this would also be appreciated.

Anyone know the average time into a loan foreclosure happens, regardless of the fact that it is possible at any time?

To the posters letting me know it is possible at any time...thanks!

Now, there has to be some statistics out there for average duration before foreclosure????

Answer 1

Foreclosure is possible anytime the loan is in arrears enough that the mortgage company feels they have to foreclose to get their outstanding balance.

Lien process is different in every state; generally a securred (or in some states unsecured creditor) files suit for a defaulted balance; upon winning a judgement, they perfect and file/attach a lien to real property.

Your local clerk's office can tell you more about the local process

Answer 2

You face foreclosure action at ANY time during the loan term if you default on payments as agreed. That would include the very last year of a thirty year mortgage. Of course, one should be able to arrange some sort of equity loan in the interim, if the house has substantial equity. However, a first mortgagor does not care how much equity you have in the house. Their only concern is that payments are made as agreed. If you fail to do so, look for a foreclosure notice.

Answer 3

There is no typical and no rule for that. I met someone who has lived in his house for more than 30 years but kept refinancing since the house kept going in up in value. Now it has gone down in value (along with all the real estate he invested in), so the third mortgage holder got tired of not being paid and foreclosed on the house.

When a foreclosure takes place depends on when you stop paying what you are owed. When they sell the house at auction they will collect as much as they can. If your house is not worth at least as much as you owe because real estate market is down in the toilet the mortgage holders might decide that they will not release the lien on the house. If you can convince them to take less money for the debt (short selling) you might be OK (but penniless). Otherwise you are still paying taxes on a house you can't sell and you still have a gigantic debt. If you just walk away from it they will come after you for the missing amount owed.

Answer 4

Foreclosure is possible at any point in the term wether or not their is equity in the house. If you don't make your payments, you're getting foreclosed on. It doesn't matter where you are at in your loan at all.

Answer 5

The period of time for forclosure to arise varies via state. I'm a realtor in Texas. The timing right here is likely one of the fastest within the country. In Texas you'll omit two repayments earlier than they move into the foreclosures method, that method takes 21 days. So altogether approximately three months adding the two per month repayments that had been ignored.

Answer 6

foreclosure can begin anytime into the new loan.
In texas once you are 30 days late they can begin the process then.

Regardless of equity, little, no, alot of equity they can and will foreclose.

Good Luck!

Answer 7

A neighbor I used to have decided that he wasn't going to pay his last payment on his house, figured the bank wouldn't bother with foreclosure proceedings for one payment.

He was wrong.

And just before the bank foreclosed, he finally relented, but that was a very expensive lesson.