
How Does a Foreclosure Work?
As a homeowner, it's important to understand how home foreclosures work. Foreclosure happens when a homeowner is unable to make mortgage payments, and a lender takes legal action to repossess the property. If you find yourself facing foreclosure, having a basic understanding of the process will help you make informed decisions and be able to negotiate with your mortgage lender. Here is some information you can use to navigate the process and reduce your likelihood of experiencing foreclosure in the first place. What Is Foreclosure? Foreclosure is a legal process in which a mortgage lender repossesses a home due to the homeowner's inability to make timely mortgage payments. When a borrower takes out a mortgage to buy a home, the property serves as collateral for the loan. If the borrower…