Short Sale or Loan Modification? A Simple Decision Flow That Works
Discover how to decide between a short sale and loan modification with our simple decision flow. Get clarity on income, equity, and legal timelines to take control of your situation.
Foreclosure Timeline, Explained: What Happens After a Notice of Default and What To Do Now
Understand the foreclosure timeline to take control after a Notice of Default. Learn your options and deadlines to navigate the process effectively.
TABLE OF CONTENTS
Foreclosure Timeline, Explained: What Happens After a Notice of Default and What To Do Now
In 7 minutes, you’ll know your exact deadlines, your viable options, and what to do in the next 48 hours to stay in control.
Need help picking the right track for your dates and income? Get a one‑page plan within 24 hours: Get Help Now →
Snapshot: From NOD to Sale (Typical Non‑Judicial States)
- Notice of Default recorded → 90‑day reinstatement window
- Notice of Sale posted/mailed/published → auction can be set 21+ days later
- Sale date → property is sold to a third party or reverts to the lender
Judicial states use court steps instead of trustee notices. Principle is the same: earlier action equals more options.
Quick timeline visual: NOD date → 90‑day window → NOS → 21+ days → Sale
Which situation are you in?
I can catch up quickly
- Consider reinstatement or a short repayment plan.
- Confirm exact arrears and fees in your servicer portal.
The payment isn’t affordable anymore
- Consider a loan modification based on current verified income.
- Ask if a verified review can pause a scheduled sale date.
I need to sell for certainty and speed
- Price for attention and clean terms.
- Prepare a full buyer file to support postponements, if needed.
Your First 7 Days After NOD — Checklist
Log in to your servicer portal and write down: arrears, next due date, NOD date, any sale date
Call the servicer and request the full loss‑mitigation document list emailed to you
Choose a direction: reinstate, repay, loan mod, or sell
Build one complete PDF packet: statements, paystubs, bank statements, insurance, taxes, HOA, hardship letter
Start a written call log with dates, names, and promises
Set 48‑hour response reminders for any follow‑ups
Choosing a Track (Decide Fast)
- Reinstatement
- Best for: one‑time shock, cash available soon
- Speed: immediate upon cashier’s check/wire
- Repayment Plan
- Best for: income recovered, need to spread arrears
- Speed: days to set up, lasts a few months
- Loan Modification
- Best for: payment no longer fits prior income
- Speed: 30–60+ days depending on completeness and investor rules
- Sell Before Timelines Compress
- Best for: certainty, no long‑term affordability path
- Speed: list now, engineer “clean” terms that actually close
What To Expect From the Servicer
- Intake review typically 7–14 days if the package is complete
- You’ll be assigned a single point of contact or negotiator
- Valuation (BPO/Appraisal) if you pursue a short sale or certain workouts
- Written approval terms with deadlines you must meet
How to Prevent Lost Weeks
- Submit one complete, labeled PDF. Avoid photos of documents.
- Respond to any follow‑up within 48 hours.
- Keep a written log of every call and upload.
Scripts you can use on the phone:
- “I’m requesting the complete loss‑mitigation document checklist by email today, plus confirmation of my NOD date and any sale date.”
- “Please confirm whether a verified loan modification review can pause the sale currently set for [date].”
- “Please note in the file that my full packet will be uploaded as a single PDF today.”
Upload checklist (printable):
- Identification page first, then income, bank, property expenses, hardship letter, and any investor‑specific forms.
Simple “mod math” example (high level)
Assume Target P&I is based on investor waterfall using your verified gross income and target DTI band. Example only:
- Verified gross monthly income: $6,500
- Target housing DTI: 31% → target P&I (ex taxes/ins): ~$2,015
- Rate/term/forbearance steps are adjusted to approach the target P&I per investor rules
Numbers vary by investor and program; this is for orientation only.
If a Sale Date Is Set
- Ask in writing whether a verified loan mod review can pause the sale
- If selling, submit: clean purchase contract, buyer pre‑approval/proof of funds, estimated settlement statement that fits net rules
- Get any postponement on official letterhead. Do not rely on verbal promises
If sale ≤ 14 days away — do this now:
- Email your negotiator and SPOC; subject: “URGENT – Sale [date] – Complete Packet Uploaded – Postponement Request”
- Attach: full packet PDF, buyer file if selling, and a one‑page dates summary
Special Cases
- FHA: Watch Pre‑Foreclosure Sale (PFS) rules, ATP value, and defect cures
- VA: Compromise Sale can preserve entitlement and avoid foreclosure marks
- GSE (Fannie/Freddie): Occupancy proof and net sheet accuracy matter
Numeric example — short sale net sheet accuracy:
- Contract price $400,000; liens and costs total $392,000 → net $8,000
- If investor minimum net is 92% of BPO $410,000 → required net ~$377,200 → your $8,000 cushion is adequate; watch fees and credits
Comparison: Reinstatement vs Repayment vs Loan Mod vs Sell Now
Option | Best for | Speed | Docs | Risks |
Reinstatement | One‑time shock, cash available | Immediate | Low | Cash strain, fees |
Repayment Plan | Income recovered | Days | Moderate | Higher temp payment |
Loan Modification | Payment unaffordable | 30–60+ days | High | Denial if docs/income mismatch |
Sell Now | Need certainty or no affordability path | List now | Buyer file + net sheet | Market/time risk |
FAQs
- How long from NOD to foreclosure sale?
- In many non‑judicial states: NOD → 90 days → NOS → 21+ days → sale. Confirm your state statute and any investor overlays.
- Can a loan modification stop a sale date?
- Often, a verified review can pause a sale, but rules vary by investor and state. Get it in writing.
- What’s the difference between judicial and non‑judicial foreclosure?
- Judicial goes through court hearings; non‑judicial follows trustee notices. Court calendars can lengthen timelines.
- What if I’m past the reinstatement period?
- Explore mod, sell, or bankruptcy advice from counsel. Ask about postponement tied to a verified review or a clean sale file.
Internal resources to go deeper
- Servicer phone scripts and exact questions: How To Talk to Your Servicer: Scripts, Document Checklist, and Exact Questions to Ask
- Loan Modification Requirements (docs and income math): Loan Modification Requirements: Documents, Income Math, and How Decisions Are Made
- Short Sale plain‑English guide: What Is a Short Sale? Plain English Guide, Process, Pros and Cons
State specifics
Nevada notes (non‑judicial)
- Typical 90‑day reinstatement after NOD, NOS ≥ 21 days before sale. Confirm current statute and trustee postings.
Judicial state checklist
- Track court hearing dates, service requirements, and mediation rules. Build extra time for continuances.
Definitions (first use)
- NOD: Notice of Default
- NOS: Notice of Sale
- BPO: Broker Price Opinion
- PFS: Pre‑Foreclosure Sale (FHA)
- ATP: Approval to Participate (FHA PFS)
Bottom Line
The timeline won’t slow down. Complete packets, early decisions, and pricing for certainty keep you in control.
Ready for a clear plan?
- Button: Get My Dates and Options
- Text link: See the exact document checklist: How To Talk to Your Servicer: Scripts, Document Checklist, and Exact Questions to Ask
Disclaimer: Educational content only, not legal, financial, or credit advice. Timelines vary by state, investor, and loan type. Confirm your dates in your servicer portal and with a HUD‑approved housing counselor or attorney.
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