What is a foreclosure?

Question

What is a foreclosure?

Answer 1

Foreclosure is being 3 or more payments behind with a mortgage payment.  As a result the mortgage lender request the property back.  In other words it's when the Bank or Mortgage lender kicks people out of their homes because they can't pay.

Answer 2

When you buy a home, you usually need to borrow money to pay for it. You go to a bank who offers to lend you money. The terms of that loan is known as the note. The bank or lender request that you put the propertyu as collateral for the note and that document is known as the mortgage. It is clearly stated in these documents that in case of default on the loan the lender will foreclose on the property. Once you go 120 days late on the payments the lender will start legal proceedings to sell your property to satisfy the note. They are foreclosing actually means they are seeking  an early termination (acceleration) of the loan agreement as per the original loan terms in case of default

Answer 3

When you buy a house, most people do not have enough money to pay cash for the house, so they get a loan (mortgage), where a bank gives you the money to buy the house.  And you sign an agreement to repay the money to the bank, plus interest, at a certain amount per month. If you stop making the monthly payments, the bank says you've broken the agreement, so that house becomes their property.  Many forclosures could be avoided if the home owner just pick up the phone and talk to the bank to see if there would be any way to adjust the mortgage so the homeowner can keep making monthly payments.  Most bank's don't want more houses on their books.

Answer 4

it is  a borrower(s) failure to pay a mortgage and the lender is forced to evict them and resell  the property and then sue to former borrowers for any amount needed to be made whole including damages to the property.