Foreclosure - REO

 

Definition

 

Legal process where a lien holder obtains a termination of a mortgagors equitable right of redemption by a court order

 

Notice to accelerate – once debtor is 60 days past due, they will receive this notice.   If they don’t respond, an attorney for the bank will send them a demand letter.

Notice of default-   if they don’t respond to the demand letter by payment in full amount plus fees, a formal foreclosure will be filed.

 

Notice of sale – if there is no response to the demand letter or   notice of foreclosure, there will be a notice of sheriffs sale in less than 30 days.