The Foreclosure Process
A foreclosure is a legal process whereby a lending institution aims to recover all or parts of a loan balance from a borrower (typically the homeowner) who has stopped making mortgage payments.If the situation cannot be resolved, the lending institution will then proceed to a foreclosure auction, sell in an attempt to recoup the value of the loan. Should the foreclosure auction fail, the lending institution will normally take position of the property, which would then deem the piece of real estate as a bank-owned property or real estate owned property (REO).