Real Estate Blog - Fred Krawczyk & Associates.
Foreclosure is a process, not an event.
When the Borrower is unable to make loan payments, usually after 3 or more missed payments, the Lender will hire a local law firm to file a Foreclosure Law Suit against the Borrower (the current owner).
The Foreclosure Process takes a minimum of 6 months and it ends with a Foreclosure Judgment, if you don't do something like a Loan Modification, Short Sale or Deed in Lieu of Foreclosure befor the Foreclosure Judgment. The Foreclosure Judgment is a non-monetary judgment and it will prevent the Borrower from getting another home loan for at least 3 years.
Most people don't realize that, when you get a loan to purchase a home in the state of Indiana, you actually get the Deed to your home after the closing.
The Deed is mailed to the Borrower 30 to 60 days after the sale is recorded at the county court house. This is unlike financing a car where the bank holds the vehicle title until the loan is paid off. This is why a bank can repossess a vehicle, but will have to file a Foreclosure Law Suit to get possession of the home.