Quick answer
Foreclosure is the legal process a lender or servicer uses to take back a home after the homeowner fails to make the mortgage payments, usually ending in a public sale of the property to repay the debt.
Key facts
120days
No first foreclosure filing until the loan is more than
12 CFR 1024.41(f)(1) (Regulation X) · Oct 28, 2026
37days
A complete application more than this long before a sale blocks the sale during review
12 CFR 1024.41(c) and (g) (Regulation X) · Oct 29, 2026
Timeline and federal protections
Under federal servicing rules, a servicer generally can’t make the first notice or filing for foreclosure until your loan is more than 120 days delinquent. That window is for working out an alternative such as forbearance, a repayment plan or a loan modification. If you send a complete application for help more than 37 days before a scheduled sale, the servicer can’t hold the sale while it reviews it.
After that, state law takes over. In some states the lender must go to court (judicial foreclosure); in others it can foreclose without a lawsuit under a power of sale in the deed of trust. You must be notified either way.
What happens after the sale
The home is usually sold at public auction to the highest bidder, which may be the lender. If the sale brings less than you owe, some states let the lender pursue the difference. Getting a new conventional loan generally means waiting 7 years under Fannie Mae rules (3 years with documented extenuating circumstances); a short sale carries a shorter wait. A HUD-approved housing counselor can help at no cost: 800-569-4287. The home equity risks guide explains how borrowing against a home adds to this risk, and getting a mortgage after foreclosure covers what comes next.
Sources
- 12 CFR 1024.41(f)(1) (Regulation X) — Servicer cannot make the first foreclosure notice or filing until a closed-end mortgage is more than this delinquent; Loss mitigation protections apply to complete applications received more than this many days before a foreclosure sale (Oct 28, 2026)
- Fannie Mae Selling Guide B3-5.3-07 — Fannie Mae waiting period after a foreclosure; Fannie Mae waiting period after a foreclosure, with documented extenuating circumstances (Aug 7, 2019)
- HUD — HUD housing counseling referral line (Oct 28, 2026)
- CFPB: How does foreclosure work?
- CFPB: If I can’t pay my mortgage loan, what are my options?
Last reviewed Figures are checked against the sources above. Read our editorial policy. This page is general information, not financial advice — see the disclaimer.