What does foreclosure mean, exactly? In simple terms, the foreclosure process allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership of the property. According to RealtyTrac’s U.S. Foreclosure Market Report, as of May 29, 2020, there were 330,105 properties in “some stage of foreclosure (default, auction or bank-owned)” in the United States, so it’s hardly an uncommon occurrence.
If you (or a loved one) are facing foreclosure, make sure you understand the process. While there is variation from state to state, there are normally six phases of a foreclosure procedure.
- Foreclosure occurs when a lender seeks to seize your property as collateral for failure to pay your mortgage on time.
- There are typically six phases in the foreclosure process and the exact steps vary state by state.
- Before a home is foreclosed on, owners are given 30 days