Notice of Sale

What is a Notice of Sale?

A notice of sale in the foreclosure process typically outlines the location, time and date for the auction of a home in foreclosure. This commonly occurs at the end of the foreclosure process. A notice of sale is usually sent out after a notice of default has been sent, but this can vary from state to state. For homeowners seeking to avoid foreclosure, it can be highly beneficial to learn as much about the foreclosure process as possible.

Notice of Sale and the Foreclosure Process

A notice of sale may provide homeowners with up to 20 days’ notice prior to the sale of the home at a foreclosure auction. The final 20 days before a foreclosure sale may be the last chance homeowners have to work out a foreclosure resolution with their mortgage lenders.

After receiving a notice of sale homeowners may wish to consider these foreclosure defense options:

    • Loan Modification – This foreclosure defense involves reaching out to the mortgage lender in order to modify the original terms of the mortgage agreement. This may include a reduction in interest or principal and/or lower monthly mortgage payments.
    • Deed in Lieu of Foreclosure – This foreclosure defense option involves negotiating with the mortgage lender to accept the title of the home in exchange for release from mortgage obligations. This can be a smart option when a homeowner has an underwater mortgage and is unable to sell the home.
    • Bankruptcy – This foreclosure defense option involves filing a bankruptcy petition with the federal bankruptcy courts. This can stop foreclosure immediately once the automatic stay is in effect. For homeowners to avoid foreclosure after receiving a notice of sale, they may have to pursue chapter 7 bankruptcy since it typically takes less time than a chapter 13 bankruptcy.

Notice of Sale and Foreclosure Defense Attorneys

Foreclosure defense attorneys may provide tremendous aid to homeowners who have received a notice of sale. These attorneys can help advise homeowners as to the best foreclosure defense option for their specific situation. Additionally, foreclosure defense attorneys may negotiate with mortgage lenders to find a mortgage resolution prior to a foreclosure sale.