What is a Foreclosure and How Does it Work?

A foreclosure occurs when there is a legal proceeding by the lien holder in which they take back the property in order to recover the amount that is owed by the homeowner.

Homeowners regularly proceed without guidance of any kind through the often financially and emotionally devastating prospect of foreclosure. Speaking with a well-informed, licensed real estate professional is the best course of action for a homeowner in distress. Through comprehensive training and experience, CDPEs have the tools to help homeowners find the best solutions for their unique situations and to avoid foreclosure through the efficient execution of a short sale.

The Foreclosure Process

Forclosure Process Infographic


  • Must miss a payment, default on payment is the only way a property can enter the foreclosure process.
  • Can also be a missed payment to local taxing authority, a condo association or homeowner’s association.

Legal Notice

  • The lender or foreclosing party must notify the owner that they are entering into the foreclosure process.
  • Personal service of a document if the owner cannot be located through publication in a legal journal.

Bank Sale or Auction Date

  • Homeowner informed of bank sale or auction date
  • Foreclosing entity will gain control of the property

Reasons to Avoid Foreclosure

  • You will always have to disclose on any mortgage application and many job applications
    • Foreclosure is the only credit item that will affect your rates even when it is off your report
  • Credit scores can be lowered by 300+ points
    • Most devastating credit issue you can have in relation to future credit availability
  • You will be ineligible for a government insured loan for 5 to 7 years (only 2 years in a short sale)
  • You may end up with a deficiency judgment
  • Many employers run credit checks
  • Many current employers run credit checks and a foreclosure can put a current position in jeopardy
  • Security clearances, government positions
    • Military and law enforcement and more

Learn more about the foreclosure process in Pennsylvania


If you or someone you know can use my services, call or email me today so we can get started!

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