Foreclosure
Temporary Financial Difficulty
Frequently Asked Questions About Foreclosure
Help for Homeowners Facing the Loss of Their Home
Foreclosure
When most people purchase property, they do not have enough money to simply purchase the property outright. In order to make the purchase, they are required to borrow money from a lender. In exchange for lending the money, the lender will hold a lien against the property. If the borrower does not make the required payments, then the loan goes into default and the lender can exercise the lien against the property, in order to take legal possession of the property for the purpose of selling it to pay off the borrower's loan. This process is called mortgage foreclosure.
Foreclosure is the legal means that a lender can use to repossess (take over) your home. When this happens, you must move out of your house. If your property is worth less than the total amount you owe on your mortgage loan, a deficiency judgment could be pursued. If that happens, you not only lose your home, you also would owe an additional amount.
Both foreclosures and deficiency judgments could seriously affect your ability to qualify for credit in the future. So you should avoid foreclosure if possible.