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The legal process by which a property may be sold and the proceeds of the sale applied to the mortgage debt. A foreclosure occurs when the loan becomes delinquent because payments have not been made or when the homeowner is in default for a reason other than the failure to make timely mortgage payments.
Foreclosure occurs when your lender repossesses your home because you have defaulted on your mortgage loan or home equity line of credit.
You default by failing to pay interest and repay the principal you owe on time. Foreclosed property is often sold at auction to allow the lender to recover some or all of the outstanding debt.
- Browse Related Terms: Credit rating, Default, Foreclosure, Government-Sponsored Enterprise (GSEs), Guarantor, Home Equity Line of Credit (HELOC), Mortgage backed security, Pass-through security, Secured bond, Secured credit card, Securitization
All > Business > Finance > Personal Finance > Mortgage
the legal process by which a property may be sold and the proceeds of the sale applied to the mortgage debt. A foreclosure occurs when the loan becomes delinquent because payments have not been made or when the homeowner is in default for a reason other than the failure to make timely mortgage payments.
Departments of the Treasury & Housing and Urban Development, Making Home Affordable Program - Cite This Source - This Definition- Browse Related Terms: Deferred payments, Foreclosure, Home Affordable Foreclosure Alternatives Program (HAFA), Home Affordable Modification Program (HAMP), Home Affordable Refinance Program (HARP), Home Owners’ Loan Act, Loss Mitigation, Second Lien Modification Program (2MP), Trial Period or Trial Period Plan, Work Out
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