What Is a Foreclosure? | Millionacres

When homeowners stop making mortgage payments, their lenders don’t take kindly to it. And that’s how foreclosures come to be.

But what, exactly, is a foreclosure?

Foreclosure is the legal process by which a lender attempts to get a buyer to repay an outstanding mortgage balance after that borrower stops paying their monthly payments. A lender that hasn’t gotten paid can force the sale of a delinquent owner’s home to recoup its money. 

Foreclosure can be a miserable process for homeowners. But as a buyer, it can present an opportunity to snag a home on the cheap. 

How foreclosure works

The exact foreclosure process varies from state to state, but here are the basics.

First, a borrower falls behind on his or her mortgage payments. When that happens, a lender typically gives that borrower a chance to catch up in the form of a grace period. During that time, a

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