If you’re facing foreclosure, you’re not alone. In 2024, foreclosure filings were reported on 322,103 U.S. properties.[1] While the situation can be extremely stressful, it’s essential to understand that you have options.
In a foreclosure, your mortgage lender sells your property, typically at auction, to pay off what you owe on the house. However, you typically need to miss at least four consecutive payments before a lender can begin foreclosure proceedings.
The entire foreclosure process can last months or even years, so there's plenty of time to make a plan. For instance, you could sell your house to avoid foreclosure, seek a loan modification, or refinance to make payments more affordable.
Understanding the foreclosure process and timeline can help you determine the best course of action.
| 💡 We leverage thousands of data points to connect you with the exact real estate expertise you need. Find top-rated agents with the experience you're looking for — and benefit from Clever's pre-negotiated commission savings if and when you decide to sell. Enter a few home facts, see what different agents suggest for your situation, and make an informed decision on how best to move forward — no added fees or obligation. |
How long does it take for a house to go into foreclosure?
Homes typically go into pre-foreclosure after the owner has missed 3 to 6 months of payments. However, it doesn’t happen all at once. There are several phases to foreclosure, which generally give you multiple opportunities to stop it.
“Foreclosure usually starts after three missed payments, but early signs appear after the first,” said Roy L. Kaufmann, an attorney and director of the Service members Civil Relief Act Centralized Verification Service (SCRA). “A single missed payment prompts a notice and possibly late fees. By the second, the lender’s communication ramps up.”
The foreclosure timeline
A single missed mortgage payment doesn’t necessarily lead to foreclosure, but it does start the clock ticking. Let’s walk through the timeline.
🟢What happens after 1 missed mortgage payment? (30 days late)
Most mortgages have a 15-day grace period after the due date during which your payment will be accepted without penalty. If you fail to pay within the grace period, you’ll likely incur a late fee.
If you don’t pay within 30 days, your lender will contact you about the missed payment. They may also report you to the credit bureau, which could hurt your credit score.
If you think you might sell your house to avoid foreclosure, now is the time to start the process — especially if you’re selling a home that needs work.
🟡What happens if you're 2 months behind on your mortgage? (60 days late)
As you approach 2 months of missed payments, your loan servicer must contact you via phone and provide information about assistance that may be available. You’ll also receive a notice of delinquency, stating how much you need to pay to get caught up.
Late fees will continue to add up. These can be significant — 4–5% of the total overdue balance[2] — making it hard for you to catch up. Your credit score will also drop further.
🟠What happens if you're 3 months behind on your mortgage? (90 days late)
At this point, your lender will issue a Notice of Default. This is when foreclosure proceedings may begin, placing you in pre-foreclosure. You’ll also incur another late fee and further damage your credit score.
You still have time to negotiate options. For instance, most lenders give you the right to reinstate a loan, meaning you pay one lump sum to pay what you owe on the loan, plus late fees and other expenses. This stops the foreclosure process and allows you to resume making regular payments.
You may also want to explore ways to sell your house fast. While you might not get the full market value, companies that buy houses for cash deliver a quick transaction — especially if you're selling a house that needs work.
🔴What happens if you're 4 months behind on your mortgage? (120+ days late)
This is when the foreclosure process escalates, but the timeline varies by state. In the last quarter of 2024, it took an average of 762 days to foreclose on a home.[3] A notice of sale will be issued, and your home may be scheduled for auction.
Once your home sells, you’ll receive an eviction notice if you haven’t vacated the property. Some states have a redemption period after the sale. During this time, you can buy back your property by reimbursing the highest bidder or paying off the entire mortgage.
What determines the foreclosure timeline?
No two foreclosures are the same. Several factors can impact the process and timeline, most notably state laws.[4] Some states only require a minimum of 10–15 days from the foreclosure notice to the sale, while others stretch it to 120 days.
Similarly, some states only allow judicial foreclosures, which occur in court and could take a year or more. Other states only allow nonjudicial foreclosures, which are much shorter (1–2 months), while 32 states allow both.
Lenders may also have different foreclosure practices that impact the timeline. For instance, those with large portfolios of low-risk loans may be more lenient about missed payments. They might forgive the occasional missed payment and only seek foreclosure if you miss more. Some lenders offer skip-payment mortgages, which give homeowners a grace period for nonpayment.
On the other hand, lenders with high-risk loans might begin foreclosure proceedings after only two missed payments.
The type of loan you have also matters. For instance:
- FHA loan: Before filing for foreclosure, the FHA loan servicer must review a borrower’s options using a “waterfall” process — a series of steps in a specific order.[5] This can involve complex calculations, which can extend the timeline.
- VA loan: Active-duty service members have special safeguards under SCRA, protecting them against foreclosure for 1 year from the date of active-duty status.[6] They may also receive an extended redemption period, allowing them more time to purchase the property back.
- USDA loan: USDA loans aim to keep people in their homes, so lenders prioritize a repayment plan or special forbearance agreement over a pre-foreclosure sale. Loan modifications can extend the loan for up to 40 years.
In addition, the Homeowners Assistance Fund (HAF) was designed to help homeowners financially impacted by COVID-19.[7] Programs vary by state, and funds can be used to pay past-due mortgage payments, which can delay the foreclosure proceedings. The program will end in September 2026, unless state funds are exhausted first.
⏰Foreclosure timelines by state
| State | Days After Missed Payment Before Foreclosure Begins | Minimum Notice Period Before Sale | Right to Reinstate Before Sale | Redemption Period After Sale |
|---|---|---|---|---|
| Alabama | 120 days | 3 weeks | No | Yes |
| Alaska | 120 days | 3 weeks | Yes | No |
| Arizona | 120 days | 91 days | Yes | No |
| Arkansas | 120 days | 60 days | Yes | Yes (judicial only) |
| California | 120 days | 20 days | Yes | No |
| Colorado | 120 days | 45 days | Yes | Varies |
| Connecticut | 120 days | 30 days | No | Yes |
| Delaware | 120 days | 14 days | No | Yes |
| District of Columbia | 120 days | 30 days | Yes | No |
| Florida | 120 days | 10 days | No | Yes |
| Georgia | 120 days | 15 days | Yes | No |
| Hawaii | 120 days | 35 days | Yes | No |
| Idaho | 120 days | 120 days | Yes | Yes (judicial only) |
| Illinois | 120 days | 30 days | No | Yes (limited) |
| Indiana | 120 days | 90 days | Yes | No |
| Iowa | 120 days | 28 days | Yes | Varies |
| Kansas | 120 days | 28 days | Yes | Varies |
| Kentucky | 120 days | Varies | Yes | Yes |
| Louisiana | 120 days | 30 days | Yes | No |
| Maine | 120 days | Varies | Yes | No |
| Maryland | 120 days | 15 days | Yes | Yes |
| Massachusetts | 120 days | 21 days | Yes | No |
| Michigan | 120 days | 4 weeks | Yes | Varies |
| Minnesota | 120 days | 8 weeks | Yes | Yes |
| Mississippi | 120 days | 3 weeks | Yes | No |
| Missouri | 120 days | 20 days | Yes | Varies |
| Montana | 120 days | 120 days | Yes | No |
| Nebraska | 120 days | 4 weeks | Yes | No |
| Nevada | 120 days | 15 days | Yes | No |
| New Hampshire | 120 days | 25 days | Yes | No |
| New Jersey | 120 days | 10 days | Yes | Yes |
| New Mexico | 120 days | 30 days | Yes | Yes |
| New York | 120 days | 4 weeks | Yes | No |
| North Carolina | 120 days | 20 days | Yes | Varies |
| North Dakota | 120 days | 90 days | Yes | Yes |
| Ohio | 120 days | 3 weeks | Yes | Yes |
| Oklahoma | 120 days | 75 days | Yes | Yes |
| Oregon | 120 days | 120 days | Yes | Yes (judicial only) |
| Pennsylvania | 120 days | 60 days | Yes | No |
| Rhode Island | 120 days | 21 days | Yes | No |
| South Carolina | 120 days | 21 days | Yes | No |
| South Dakota | 120 days | 4 weeks | Yes | Yes |
| Tennessee | 120 days | 30 days | Yes | Yes |
| Texas | 120 days | 41 days | Yes | No |
| Utah | 120 days | 31 days | Yes | No |
| Vermont | 120 days | 90 days | Yes | Varies |
| Virginia | 120 days | 60 days | Yes | No |
| Washington | 120 days | 90 days | Yes | No |
| West Virginia | 120 days | 4 weeks | Yes | No |
| Wisconsin | 120 days | 6 weeks | Yes | Varies |
| Wyoming | 120 days | 38 days | Yes | Yes |
Source: NoLo.com
How to avoid foreclosure (even if you’ve missed payments)
Foreclosure is a process, and there are ways to stop it once it has begun. Timing is everything — the sooner you act, the more options you have. So, as soon as you know you can’t make your payments, contact your lender.
“If you expect to recover from your financial problems soon, you should contact your mortgage service early and let them know,” said Alexi Morgado, a realtor and founder of Lexawise Real Estate Exam Prep. “They may offer you a forbearance or loan modification. In the worst case, it’s always better to try to sell the property.”
Work with your lender to stay in your home
Lenders typically lose money on a foreclosure, so they’re motivated to help you stay in your home. Here are some options you can explore:
- Loan reinstatement. Pay all missed mortgage payments, late fees, and legal costs in one lump sum.
- Loan modification. Your lender may adjust the loan terms, such as the interest rate or repayment schedule, to make payments more affordable.
- Forbearance agreement. Your lender will reduce or suspend your monthly payments for up to 1 year.
- Repayment plan. This arrangement spreads what you owe over future payments, similar to your original mortgage.
- Refinance. If you have good credit and interest rates have fallen at least 1% since your original loan, refinancing can lower your monthly payments permanently.
Sell or surrender your home
Selling your home is one of the most effective ways to stop foreclosure — especially if you've built up equity. Here are your best options, laid out clearly so you can decide what works for your situation.
🤝 Option 1: Traditional home sale
Pros
- Most likely to get full market value for your home
- Realtors know how to price and market your home for a fast sale
- You avoid foreclosure and credit damage
Cons
- Takes time — especially if the buyer needs financing
- You’ll need to pay realtor fees (~5–6% total commission)
- May require you to pay for repairs and closing costs
“In the best-case scenario, your home’s value is higher than your mortgage balance,” says Alexi Morgado, realtor and founder of Lexawise Real Estate Exam Prep. “In this case, you can do a traditional sale.”
A traditional home sale is generally going to get you the max value for your home. However, if you want to go this route, it's best to start early — ideally, after the first missed payment — since selling a house can take an average of 86.
If you want to keep as much of the sale profit as possible, try a low-commission real estate company. These agents charge significantly less than the average 3% — often as low as 1–1.5% — which could save you thousands of dollars.
💡 Tip: Ask a realtor for a free comparative market analysis (CMA) to determine your home’s fair market value. Then request a mortgage payoff statement from your lender to know what you’ll owe, including missed payments and fees.
💰 Option 2: Sell to a cash buyer
Pros
- Fast — close in as little as 1–2 weeks
- No repairs or showings — sell as-is
- Avoid foreclosure and lengthy sale process
Cons
- Offers are typically well below market value
- Some buyers may try to press their advantage if they know your situation
Cash buyers (like local house flippers and "we buy houses" companies) are the fastest way to sell. They can be a solid option if your home needs work or time is running out. However, you'll almost always walk away with less cash than if you sold the traditional way.
iBuyer companies tend to pay closer to market value than fix-and-flip investors, but some charge additional fees. Many also have specific criteria that your property must meet, like its age or size.
“Buyers in these situations are often investors or people looking for a deal,” says Roy L. Kaufmann, attorney and director of SCRA Centralized Verification Service. “Transactions can move quickly, but they can also be complicated. Negotiating with the lender, handling liens, and making sure the sale covers the arrears can be tricky."
Experience is critical with a cash transaction. Look for a buyer who has worked with sellers like you before, as a home in pre-foreclosure may come with extra complexities. Also, check their online reviews and ask for proof that they have the funds to close.
💡 Tip: To ensure you're getting fair terms, request multiple offers — and always read the fine print. A free service like Clever Offers can connect you with vetted cash buyers, saving you the time and hassle of gathering competing quotes on your own.
📉 Option 3: Ask you lender for a short sale
Pros
- Avoids foreclosure
- Sell even if your home is worth less than what you owe
Cons
- Must get lender approval
- Can take time and affect your credit
- You may be on the hook for the difference if the sale price doesn't cover your balance
A short sale means you sell the home for less than your mortgage balance, and your lender agrees to accept the proceeds.
“Short sales are usually less damaging to your credit score than a foreclosure and can even result in debt forgiveness,” says Morgado.
To qualify for a short sale, you must submit a hardship letter to your lender explaining that you cannot make mortgage payments because of a financial hardship. You’ll also need to provide documentation like bank statements and copies of bills.
If your lender approves the short sale, you’ll list your home for sale. While you can do this without a real estate agent, it isn’t recommended. Instead, look for one certified in short sales to help you navigate the complex paperwork.
💡 Tip: Once a buyer submits an offer, your lender will need to review it. Be prepared to negotiate with the buyer or pay the difference (though sometimes lenders forgive the shortfall).
📝 Option 4: Deed in lieu of foreclosure
Pros
- Avoids formal foreclosure
- May release you from the remaining loan balance
Cons
- You give up the home with no profit
- You must have a clean title — no other liens or judgments
A deed in lieu of foreclosure involves voluntarily giving your home back to the lender. It’s often a last resort when selling isn’t possible.
“For a deed in lieu to work, you have to have a fully clean title,” says Ashley Morgan, attorney and owner of Ashley F. Morgan Law, PC, in Virginia. “This means there cannot be any tax liens or judgment liens against the property.”
Compared to a formal foreclosure, a deed in lieu is less damaging to your credit score. This can also be a less stressful option, as it won't be publicized like a foreclosure auction would or result in an eviction.
More importantly, it releases you from making more mortgage payments or paying off the remaining loan balance. In some cases, the lender may let you lease back the property for a set time. This saves them money and gives you time to find a new place to live.
💡 Tip: If you’re behind on payments, the earlier you act, the better. Start exploring your selling options after the first missed payment — before the foreclosure timeline accelerates. Whether you want to sell fast or get the best price, An experienced agent can guide you through your choices and help you make the most of your situation.
| ⭐ The average home seller who lists with Clever gets their first qualified offer in 24.1 days — that’s 27 days faster than the average time to receive an offer in the United States. Match with top-rated listing agents and get a pre-negotiated commission rate of just 1.5%. |
Hardship programs may be available
You may qualify for a local or federal relief program, especially if you’ve been affected by a job loss, medical emergency, or disaster. Visit your state’s housing agency website or contact nonprofits specializing in housing assistance to find local help.
Other relief options include:
- The Homeowner Assistance Fund (HAF): This federal program provides financial assistance to individuals who were financially impacted by the COVID-19 pandemic. You can get help with mortgage payments, property taxes, and other housing-related costs.
- FHA, VA, and USDA loan relief programs: Homeowners with government-backed loans may qualify for special forbearance or modification options. These include payment deferrals, extended repayment plans, or loan modifications. The U.S. Department of Housing and Urban Development (HUD)[8] and VA[9] websites have more information about your options, or you can also check with your loan servicer.
Legal options to consider
There are also legal alternatives for avoiding foreclosure. As long as your home hasn’t been sold, filing for bankruptcy stops the foreclosure process immediately.[9] You have two options:
- Chapter 7 delays foreclosure for about four months. This is best for people who don’t plan to stay in their homes.
- Chapter 13 saves your home, letting you pay off your debt through a repayment plan.
It’s important to note that while both foreclosure and bankruptcy hurt your credit, bankruptcy does more harm. Chapter 13 stays on your credit report for up to seven years, and Chapter 7 lasts for 10 years.
Legal defenses to foreclosures are rare, but not unheard of.[10] Potential foreclosure defenses include:
- The lender didn’t follow the state’s required foreclosure procedures.
- The lender failed to comply with federal mortgage servicing laws.
- The lender can’t prove it owns the loan.
- The lender made a serious mistake when handling your account.
- Your lender is failing to comply with the federal protections you receive as an active-duty military servicemember.
- The lender violated the Truth in Lending Act, Real Estate Settlement Procedures Act, or other federal law.
- The statute of limitations has passed.
- The lender used a defective affidavit or declaration in the foreclosure process.
- The lender used predatory or unfair lending practices when you took out your mortgage loan.
Work with a housing counselor or foreclosure attorney
HUD-certified housing counselors provide free or very low-cost counseling services to help you navigate housing challenges. With offices in communities nationwide, they can organize your finances and represent you in negotiations with your lender.
A foreclosure attorney isn’t necessary, but they can be helpful in some situations. For instance:
- You want to keep your home and believe you have a defense against foreclosure.
- You’re in the military.
- The lender is proceeding with the foreclosure despite your pending application for loss mitigation (dual tracking).
- You may need assistance with a loss mitigation option, such as a loan modification.
- You want to file for bankruptcy.
When Is It Too Late to Stop a Foreclosure?
Generally, you can stop a foreclosure at any point before your home is sold at auction. If it’s a nonjudicial foreclosure, you have right up to the sale date, sometimes even hours before. In a judicial foreclosure, you often have until the court orders a sale.
Some states offer redemption periods during which you can reclaim your home. You can reimburse the highest bidder or pay off the entire mortgage.
Can you recover after foreclosure?
A foreclosure doesn’t have to be the end of your homeownership experience. The worst consequence is the damage to your credit score. So, after a foreclosure, work on rebuilding your credit. Rent your next home, and you can apply for another mortgage in 2–7 years, depending on the loan type.
For instance, you can qualify for an FHA-insured mortgage loan after 3 years, unless you filed for bankruptcy.[11] With a Chapter 7 bankruptcy, you only have to wait 2 years; with Chapter 13, you may be able to get a new loan before completing the repayment plan.
VA loans have more flexible credit requirements, allowing veterans to obtain a new loan post-foreclosure more quickly than buyers requiring conventional financing.[12] To get a new loan, you’ll need to wait 2 years and get an updated Certificate of Eligibility, which confirms you meet the criteria for a VA loan.
The following steps can help you recover after foreclosure:[13]
- Find an affordable place to live. Your lender may let you rent back the home you lost in foreclosure. Some offer cash to help you vacate the house quickly.
- Reevaluate your financial situation. Take a hard look at your spending and saving habits. Budget for your fixed and variable expenses, and work toward saving at least 3 months of expenses.
- Get help. Talk with a reputable nonprofit or HUD-certified housing counselor to help you develop a plan for improving your financial situation.
- Rebuild your credit. If you pay your other debt responsibly, you could begin to improve your credit score just 2 years after a foreclosure. Be vigilant about paying at least the minimum payment on time.
Foreclosure FAQs
Can I miss one mortgage payment without penalty?
Most lenders give you a 15-day grace period to make a payment without penalty. But if you fail to pay within this time, you’ll incur a late fee. If you don’t pay within 30 days, your lender will likely contact you about the missed payment and report you to the credit bureau.
What happens if I miss two mortgage payments?
If you miss two mortgage payments, your lender will contact you via phone to provide assistance information. You’ll also receive a notice of delinquency. Late fees will continue to accumulate, and your credit score will continue to decline.
Is it better to sell my home than go through foreclosure?
Generally, yes — especially if you sell for more than the overdue balance. Selling your home allows you to avoid foreclosure and the resulting damage to your credit score. It will also relieve the emotional and financial stress of a foreclosure.
What is a “mortgage grace period”?
A mortgage grace period is a set timeframe after the mortgage payment due date during which penalties are waived. It’s usually 10–15 days, depending on the lender. If you don’t make the payment during the grace period, a late fee is charged, and the missed payment is reported to the credit bureaus.
How long does foreclosure stay on your credit?
A foreclosure stays on your credit report for seven years after the first missed payment. But by paying your other debts responsibly, you could start improving your credit score after just 2 years.
