What Is Foreclosure?

Technically, foreclosure is a legal proceeding. It arises when a mortgage lender or bank attains a legal right to terminate or assume a home-owner’s right to real property (land). The lender may assume your equitable rights of redemption of the home you used as collateral or security to a loan if you fail to repay your responsibilities as a home loan borrower.

You may not be aware about how soon the process of foreclosure could start. You do not need to default on your loan repayment for many years for a lender to begin the process. In general, any bank could start the foreclosure process on the first time you default on your loan repayment.  There are other defaults which can start the foreclosure process such as not paying your real property taxes, failure to maintain insurance on the home, or letting it go into disrepair (waste).

 Homeowners like you should always strive to be very diligent in paying mortgage responsibilities. It is not ideal to miss even a single payment. This is useful information that could be considered as a good help with foreclosure. Many homeowners do not worry about missing on a payment due date because they always think it is just the first time and that they may not incur any harm.  Not a good plan.

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