What Happens When You Receive A Foreclosure Letter?

Sometimes you might find yourself in a situation you could not have imagined, such as missing one or more mortgage payments. This will quickly be followed by a series of communications often ending in a foreclosure letter from the attorney representing your lending institution. To prevent this outcome, it may be possible for you to arrange a loan modification or loss-mitigation by discussing these options with your lender.

Neither you nor your lender wants a foreclosure to take place:

The Foreclosure Letter

The path toward foreclosure begins with one mortgage payment not being made. This will cause your lender to contact you to let you know they have not yet received your payment. A second missed payment will likely mean that you will receive a phone call from the lender's representative inquiring about the missed payments. At this point, it's a good idea to try and explain the situation and offer to make some type of payment.

A third missed payment will mean that you will get a letter from your lender demanding payment. This demand letter will also inform you that if payment isn't rendered (by a specific date) then a foreclosure may be the next step.

If a fourth month goes by without some type of arrangement being made with your lender, then you will most likely get a foreclosure letter from your lender's attorney. A foreclosure is either non-judicial or judicial (depending on which state that you live in).


In the case of a judicial foreclosure, you lender will file papers that will result in you being formally served by the court. A foreclosure hearing takes place in a courtroom. During the proceedings, you can dispute what your lender is presenting, offering a defense and even putting forth a counterclaim.

If you prove that there are relevant, factual differences, then your case will proceed (with a trial date being scheduled). If, however, you cannot demonstrate that such differences exist, a judgment is generally rendered. This judgment will include the date for when your home will be offered for sale. Also, legal notices will be placed in a local newspaper about when and where your home will be sold at an auction.


There is no court involvement during a non-judicial foreclosure. Your lender will first file a default notice and (after recording this) will send out a notice to you that will inform you of the impending sale. The public auction and legal notices in this case are very similar to a judicial procedure. If you wish to dispute this process on legal grounds, you have the option of taking your lender to court.

To do so, you should first file with the court a petition that requests an immediate injunction be issued. This will temporarily halt the foreclosure process. Keep in mind, however, that you must be able to prove that your lender has made an error. If you are uncertain if you have legal grounds for an injunction, a qualified attorney should be consulted so you can determine what your options are.  

For more information, contact a company like Bauer & French Attorneys at Law to learn more.