How does a home foreclosure process work?

[Icecream]

If someone with an A paper loan goes into foreclosure because their home is worth less than half the value of the mortgage therefore bank does not approve short sale, and they lost their job, how does the process work? This would be for CA. And how long does it stay on the credit report and would existing credit card rates go up? ------

[Lengyel]

Depending on the type of foreclosure, the sale date will be set by either the bank or the court. The home will be sold to the highest bidder at a public auction. If no qualifying bids are received, title to the home will revert to the bank.