The Foreclosure Process?

What is Foreclosure?

When most people purchase property, they do not have enough money to purchase it outright.

In order to make the purchase, they are required to borrow money from a lender. In exchange for lending the money, the lender will hold a security interest in the property.

If the borrower does not make the required mortgage payments, this security interest gives the lender the right to foreclose and auction the house in order to recover its investment. This process is called mortgage foreclosure.

Foreclosure is the legal means that a lender can use to repossess your home. When this happens, you must move out of your house.

If your property is worth less than the total amount you owe on your mortgage loan, a deficiency judgment could be pursued. If that happens, you not only lose your home, you also would owe an additional amount.

Both foreclosures and deficiency judgments could seriously affect your ability to qualify for credit in the future, so you should avoid foreclosure if possible… and if you are in danger, you should take immediate action!