Property Foreclosure

Property foreclosure is a legal process where a lender takes possession of a property when the owner fails to make mortgage payments. When a homeowner defaults, the lender can initiate foreclosure to recover the outstanding debt. This typically involves judicial proceedings, leading to the sale of the property at auction. The proceeds go to the lender to cover the unpaid loan. Foreclosure can significantly impact the homeowner's credit score and ability to buy another home. It serves as a last resort for lenders to reclaim their financial investment in the property.