To begin the foreclosure process, a lender must file a complaint against the borrower and obtain a decree of sale from a court that has jurisdiction where the property is located. The court will then determine whether a default has occurred. If the court finds a default, it will fix the amount of the debt, interest, and costs due and present a sensible time for payment to be made. The court may order that if payment is not made within a certain time, the property must be sold to satisfy the debt.
Before the sale date is set by the court, the lender is not required to notify the borrower (owner) of the pending foreclosure proceedings. This differs from a number of states where some type of notification must be sent to the borrower before any sale date is scheduled.
Notice of Sale / Auction
A notice of sale must be published in a local newspaper for three consecutive weeks. The trustee must send a notice of sale to the borrower and any other lien holders at least 10 days before the date of the sale.
A licensed auctioneer conducts the sale, which typically takes place outside the courthouse. After the winning bidder has been established, a notice that the sale has occurred is published in a local newspaper to advise interested parties that any objections must be made within 30 days. If no objections are filed, the sale is confirmed by the court and the property ownership is transferred to the winning bidder.
There is no established redemption period for the borrower, but the courts can set a redemption period on a case-by-base basis.