What is a foreclosure?

A foreclosure is when a lender takes control of a property after the borrower misses several mortgage payments.

When you purchased your home and took out a mortgage, you agreed to a deal with your bank or lender. They gave you the financing upfront to pay for the home, and in return, you signed a contract agreeing to pay a specific amount each month for a set number of years.

If you start falling behind on your payments, or stop making your mortgage payments completely, the bank or lender can foreclose on the property and sell it as a way to make back the lost funds.

When you bought your house, you signed a mortgage contract specifying the amount of money you borrowed, as well as the interest rate and the details about your monthly payment.

To continue reading the rest of the article, please click on the source link below:

https://www.bankrate.com/mortgages/what-is-a-foreclosure/

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