Mortgage Foreclosure

Mortgage foreclosure occurs when a borrower fails to repay their mortgage loan as agreed, typically by missing multiple payments. The lender then has the legal right to demand repayment of the entire loan amount. If the borrower does not resolve the debt, the lender can initiate a foreclosure process, which often involves selling the property at auction to recover the unpaid loan balance. Foreclosure is a legal action that ultimately results in the borrower losing their home. It aims to protect the lender’s financial interest while providing a structured process for resolving unpaid mortgages.