Once the bank has the automatic stay lifted, it can immediately begin foreclosure. A non-judicial (doesn't go through court) foreclosure takes about 5-6 months to complete.
Prior to initiating a foreclosure, the lender must record a notice of default in the county in which the property is located and the defaulting borrower must be personally served with such notice at least 120 days before the sale date. A copy of the notice of default must be published date at least 4 consecutive weeks in a newspaper of general circulation in the county in which the property is located with the last notice published at least 30 days before the proposed sale.
When the property being foreclosed upon is occupied at least three (3) good faith attempts must be made to serve the Notice of Sale on different days during a seven (7) day period on the adult occupants of the property. These service attempts must be made at least 30 days before the date of the sale.
Foreclosure sales must take place on a day other at the time, place and date designated in the notice of sale as part of a public auction. The trustee will auction the property to the highest bidder. The foreclosure sale may be postponed for 30 days from the original sale date if at least 20 days written notice is provided to the original recipient of the notice of default.
A deficiency judgment may be obtained when a property in foreclosure is sold at a public sale for less than the loan amount that the underlying mortgage or deed of trust secures. Deficiency actions must be brought within 90 days after the foreclosure sale. Judgment cannot exceed the difference between the amount of the debt and the fair market value of the property. Costs and fees in filing the deficiency can also be recovered. However, you can include this in your bankruptcy and have the debt discharged.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).