The repossession of a property by the bank or lending institution in the event a borrower defaults on their mortgage payments.
A foreclosure is the repossession of a property by the bank or lending institution in the event a borrower defaults on their mortgage payments.
During this process, the lender or bank tries to recoup the amount owed on the loan by selling the property.
Foreclosures are serious derogatory events on credit reports, are are taken under heavy consideration when determining qualification for a new mortgage.