The first stage in the foreclosure process is Preforeclosure This is when the bank files the foreclosure lawsuit. In some states, its called the Notice of Default and in other states, it’s called a Lis Pendis. The bank can file the foreclosure lawsuit when the borrower becomes 3 payments behind. During this period, the borrower has options to solve their situation: – They can pay off the lender in full. – They can bring the loan current for all of the past due payments and attorneys fees due.