• What is a foreclosure?

  A foreclosure occurs when a lender takes control of a property after a borrower misses multiple mortgage payments. This is also known as defaulting on the loan. 
• How to find foreclosures

  You can find foreclosures by: 

  • Working with a real estate agent who specializes in foreclosed properties 
  • Checking Boardwalk premier realty 
  • Reading the newspaper 
  • Visiting bank websites 
  • Checking public records 
  • Driving around and looking for foreclosures 
  • Visiting auction houses 
• How long does the foreclosure process take?

  The foreclosure process can take several years. In Minnesota, a typical foreclosure by advertisement takes about eight to nine months, including a six-month redemption period. 
• How to stop a foreclosure

  One way to stop a foreclosure is to “redeem” the property by paying off the full amount of the loan before the foreclosure sale. In Minnesota, most homeowners have six months to redeem the property after the foreclosure. 
• Where to file a complaint

  You can file a complaint with the Consumer Financial Protection Bureau at (855) 411-2372 or online.

Typically, your lender can’t initiate foreclosure unless you’re at least 120 days behind on your mortgage payments — this is known as the pre-foreclosure period.

During those 120 days, your lender is also required to provide “loss mitigation” options “these are alternative plans for how you can catch up on your mortgage and/or resolve the situation with as little damage to your credit and finances as possible”

Examples of typical loss mitigation options:

• Repayment plan
• Forbearance
• Loan modification
• Short sale
• Deed-in-lieu

Credit damage due to foreclosure. Once you enter foreclosure, your credit score will continue to drop. The same pattern holds that we saw above with missed payments: the higher your score was to begin with, the more precipitously your score will drop.

1. Slow credit recovery after foreclosure. The data also show that it can take around three to seven years for your score to fully recover after a foreclosure, short sale or deed-in-lieu of foreclosure.