Comment by quietsegfault

In judicial foreclosure states, the process can take 12 to 24 months, and longer if contested or if other periods apply. In nonjudicial states, timelines are shorter but still typically 4 to 9 months from default to sale.

Lenders incur legal fees, court costs, property taxes, insurance, maintenance, HOA dues, servicing advances, and loss of interest during the process. Industry estimates often put foreclosure costs in the tens of thousands of dollars per loan, excluding the loss from selling the property below the outstanding balance.

“Writing off the mortgage” is not the realistic alternative. Lenders generally compare foreclosure against loan modification, repayment plans, short sales, or deeds-in-lieu, because charge-offs are accounting outcomes after losses are realized, not an operational substitute for foreclosure.