The foreclosure process in Australia begins when you miss a repayment on your home loan. Here’s a breakdown of what happens after:

1. Your lender can issue a default notice as soon as you miss a repayment. Most lenders however will give you at least 90 days and offer financial hardship or refinancing alternatives before taking legal action. Once you receive a default notice, you will usually have 30 days to make any payments.

2. If after 30 days, you are still unable to make a repayment or come to a financial agreement with your lender, you can be served with a ‘Statement of Claim’ or summons. If this happens you should get legal aid as soon as possible. You will need to respond to the summons by filing a defence or dispute and proceed accordingly through the courts.

3. If no action is taken by you, the lender can initiate an eviction by getting a court order to repossess your home and issue you with a Notice to Vacate. You will usually have 2 - 4 weeks to vacate the property after being served with notice.

4. At the end of the Notice to Vacate period, a sheriff and locksmith along with a bank representative will visit the property - you may be escorted off the premises if you have not vacated, and any items will be put up for sale.

5. The lender can now put your foreclosed property up in a ‘forced sale’ to cover the remainder of the loan. You are still obligated to repay your loan and any balance not recovered by the sale of the property.