When does the foreclosure process typically commence?

The foreclosure process typically commences when a loan is 120 days delinquent. This is aligned with federal guidelines under the Real Estate Settlement Procedures Act (RESPA) and the guidelines provided by Fannie Mae and Freddie Mac. The 120-day period allows the borrower adequate time to rectify the delinquency or work with the lender on potential alternatives before the lender formally starts the foreclosure proceedings.

While some processes, such as initiating communication with the borrower regarding missed payments, may occur earlier, the formal commencement of the foreclosure—particularly under California law—generally starts after 120 days of missed payments. This timeline serves to ensure that borrowers have sufficient opportunity to cure their default by bringing their payments current or engaging in loss mitigation efforts before the lender can proceed with foreclosure actions.