When the monthly mortgage payment has been missed the first month, the lender tries to make contact with the borrower to find out the status of the payment. The missed payment DOES NOT show up on your credit until it is a full 30 days late. The second month the payment is not made the lender will likely try to work out a payment plan to help the borrower catch up (they do not want the borrower to move out and they do not want the house back). If the borrower does not communicate with the lender, the lender will likely start the foreclosure process. At this point the lender will hire a foreclosure attorney who will file a notice of default. Once the notice of default (NOD) is recorded at the courthouse, the borrower has a three month period of redemption during which time the borrower can still work out a repayment plan with the lender. Other options include selling the home, refinancing the loan only works in certain circumstances (ask me about the FHA secure loan), and just paying in full the amount past due. After the Period of Redemption is past, the foreclosure attorney sets a sale date for the property to be sold (auctioned) at the courthouse entrance. So the whole process from first missed payment to the sale/auction can last anywhere from 6 months to longer than that if certain events get in the way. So if you know of anyone who is facing foreclosure, tell them to call right away. WHY LET THE BANK STEAL YOUR EQUITY? Beware of scammers who also try to steal your equity. Visit my "Facing Foreclosure" page.