Foreclosure is the process of a lender seizing and selling a property to a new buyer when borrowers fail to make their mortgage payments as agreed. It enables the lender to recover at least some of the remaining mortgage balance.
The timeline and legal process for foreclosure can vary from state to state, but the end result is the same: The mortgage borrower loses their home.
What Is a Foreclosure?
A mortgage forms a lien against property, giving lenders the legal right to move in and take ownership in the event that the borrower defaults. The lender will then almost invariably sell the property to recoup financial losses on the home after it takes control of it. Investors and consumers can purchase these homes, often at auctions or directly from the bank or government agency that owns them.
How Does Foreclosure Work?
Foreclosures typically occur because the homeowner