Difference between revisions of "Foreclosure"

Latest revision as of 23:43, March 9, 2018

A foreclosure is a court proceeding where a party seeks to require real estate to be sold in order to meet a contractual or legal obligation.

The two most common reason for foreclosure are:

the homeowner is in default on the mortgage; to avoid foreclosing on a home, creditors may agree to make adjustments to the repayment schedule (called a mortgage modification, or a forbearance) to allow the homeowner to retain ownership.
the property owner has unpaid property taxes or other liens (such as liens to mow unkempt lawns or to remove debris)

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-When a homeowner is unable to make payments on his or her mortgage, the lender can seize and sell the property as stipulated in the terms of the mortgage contract. To avoid foreclosing on a home, creditors may agree to make adjustments to the repayment schedule to allow the homeowner to retain ownership. Those adjustments are known as a special forbearance or mortgage modification.
+A '''foreclosure''' is a [[court]] proceeding where a party seeks to require real estate to be sold in order to meet a contractual or legal obligation.
+The two most common reason for foreclosure are:
+*the homeowner is in default on the [[mortgage]]; to avoid foreclosing on a home, [[creditor]]s may agree to make adjustments to the repayment schedule (called a mortgage modification, or a forbearance) to allow the homeowner to retain ownership.
+*the property owner has unpaid property taxes or other liens (such as liens to mow unkempt lawns or to remove debris)
+[[Category:Legal Terms]]
+[[Category:Real Estate]]