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.


If you’d like to learn more, simply fill out the form below and a friendly FHA Streamline Refinance specialist will get in touch!