If foreclosure is a process at which step in the process is the mortgage company able to report a foreclosure?


Question:
At what point is a mortgage company, legally justified in reporting a foreclosure?

Answer:
As soon as they start the foreclosure process, you are in foreclosure. When they kick you out of the house and sell it at a sheriff's sale, you have been foreclosed on.

Once they start foreclosure proceedings they can report that the loan is in foreclosure. Prior to that, they report that the loan is in default or 30 days late or 60 days late, etc.
It depends on the state regulations regarding foreclosure where the property is located. Some states have longer cure periods before a foreclosure can be processed.

California, for example, you are in default at 31 days late. In Texas, foreclosure is so common, the first Tuesday of the month is regularly scheduled as a sale date. You're reported in default at 31 days and you could be out on your ear at 65 days.
Once the bank forwards your loan to their foreclosure department, and they hire a local attorney to sue you for foreclosure, then the bank will usually reflect the foreclosure status of the loan on your credit report.

They shouldn't be able to do that if you are just behind in payments and have not yet had any foreclosure proceedings initiated against you. If the bank puts the foreclosure process on hold for any reason, but have already started it, the foreclosure will still be reflected on your credit until you have successfully been able to stop foreclosure.

Good luck.

ForeclosureFish
http://www.foreclosurefish.com/...
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