If someone misses a few car payments in a row it’s possible the driveway will be eerily empty the next morning. Lenders who issue car loans can repossess a vehicle and can give the owner time to make the missed payments plus some fees and recover the car. But the automobile lender doesn’t reallyforeclosure procedure have to do anything other than keep internal records of no payments received in addition to copies of all correspondence sent to the unfortunate car owner.

Mortgage lenders on the other hand, must follow specific guidelines when foreclosing on a property and those steps must be recorded properly in public records. Mortgage lenders can’t just keep internal records then take someone’s house away without proper procedures being followed.

Whether the property is located in a judicial or non-judicial state, lenders follow the same set of basic guidelines in addition to any state-specific requirements. A judicial foreclosure is one where the lender and borrower go to court in front of a judge. A non-judicial foreclosure is a process where the lender only has to follow certain protocol. The primary one being notification.

When a borrower misses two payments in a row a Notice of Default is issued by certified mail. The lender must have on file a copy of the signed certification notice showing the borrowers were in fact legally notified. At the same time, that notice is filed in the county courthouse as a public record, how much is needed to get the loan current and a date the funds need to be made.

If the borrowers then miss three in a row, the lender will then file a foreclosure notice in the same manner. The borrowers are given an amount needed to reinstate the mortgage and when that payment needs to be made or the house will go back to the lender. However, just because a foreclosure notice has been filed doesn’t mean a foreclosure is imminent, only the lender has made it public it has the legal right to do so. After the foreclosure filing the borrowers and the lender can work together to forge a repayment plan or a note modification all after the foreclosure notice has been filed. The foreclosure notice is for lender protection. If something can be worked out, the foreclosure is lifted. If not, the property will be legally given to the lender.