1. The Foreclosure Process and Timeline
The foreclosure process is lengthy and the timeframes for when the Mortgage Lender begins the process varies from state to state.
Foreclosure: A legal proceeding in which a mortgage bank attempts to obtain the right to sell the property to recover the amount owed to them when the Owner of the property fails to make payments.

2. The Foreclosure Process
The foreclosure process is lengthy and the timeframes for when the Mortgage Lender begins the process varies from state to state.
PHASE I:
DEFAULT
Foreclosure: A legal proceeding in which a mortgage bank attempts to obtain the right to sell the property to recover the amount owed to them when the Owner of the property fails to make payments.
60 or more days in arrears

3. The Foreclosure Process
It is during this phase that the homeowner might explore selling the property in a short sale for the following reasons:
Damage to credit history is lessened
Ends the stress sooner
More dignified and less embarrassing than foreclosure
PHASE II:
PRE-FORECLOSURE
PHASE I:
DEFAULT
60 or more days in arrears
Lender sends Formal Notification to Homeowner
Short Sale: A short sale occurs when the seller’s lender accepts a discounted payoff to release an existing mortgage. They are settling for less than the amount due. This is sometimes referred to as a “pre-foreclosure sale.”

4. The Foreclosure Process
PHASE I:
DEFAULT
PHASE II:
PRE-FORECLOSURE
PHASE III:
FORECLOSURE
Loss Mitigation is not successful
Lender sends Formal Notification to Homeowner
60 or more days in arrears
When a short sale is not successful, and the homeowner is unable to work out any other options with the Lender, the property is then foreclosed on by the Lender and owned by the Lender. At this point, the Lender will attempt to sell the property via a Sheriff sale/auction.

5. Can a Commission be Paid?
Homeowner is in default
Property is Foreclosed On
Loss Mitigation is not successful
Risk to the commission increases as the process moves toward the actual Foreclosure.
Pre-Foreclosure Phase Begins
60 or more days in arrears
Lender sends Formal Notification to Homeowner
Low Risk
High Risk