A foreclosure or distressed sale begins when the owner stops making the mortgage payments. After the delinquent owner has missed several payments, the lender will record a notice of default against the property. There are typically three opportunities to buy a foreclosure:
- After the borrower is delinquent on the mortgage payments but before the trustee sale.
- At the trustee sale.
- Or from the foreclosing lender after the trustee sale.