What is a foreclosure?

by julius.brown , in category: Real Estate Investing , a year ago

What is a foreclosure?

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1 answer


by mikel , 10 months ago


Foreclosure is a legal process whereby a lender takes possession of a property from a borrower who has failed to make mortgage payments as agreed. It typically occurs when the borrower becomes unable to fulfill their financial obligations and falls into default on their mortgage loan. A foreclosure allows the lender to force the sale of the property to recover the outstanding loan balance, and the homeowner loses their ownership rights. Foreclosures often involve court proceedings and can vary depending on the laws of the specific jurisdiction.