Difference between revisions of "Foreclosure"
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| + | A foreclosure is a court proceeding upon default in a mortgage to vest title in the mortgagee. | ||
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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. | 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. | ||
| + | [[category:legal terms]] | ||
Revision as of 22:58, July 11, 2007
A foreclosure is a court proceeding upon default in a mortgage to vest title in the mortgagee.
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.