Foreclosure is a legal process by which a lender repossesses a borrower’s property when the borrower fails to repay the mortgage loan according to the terms agreed upon in the loan contract. This typically occurs when a borrower defaults on mortgage payments for an extended period of time and the lender wants to recoup their investment by selling the property. The foreclosure process can have a significant impact on the borrower’s financial history and financial standing.

During foreclosure, a homeowner is evicted from the property, often leaving a family without a home as well as negatively impacting their financial history. Foreclosure is a circumstance that should be avoided, if at all possible.