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)