What is Foreclosure?

Foreclosure Definition

The seizure of a house that has a mortgage loan against it by the lending institution. When a lender issues a mortgage loan, they keep a legal right to seize the property if the borrower is unable to make payments. The bank or lending institution takes possession of the property through a foreclosure and usually sells it through an auction to recover their money. Foreclosures have lasting implications on a borrower’s finances and credit scores.

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