Residential Mortgage Foreclosure

Residential mortgage foreclosure occurs when a homeowner fails to make their mortgage payments, prompting the lender to take legal action to reclaim the property. This process typically begins after several missed payments, leading the lender to issue a notice of default. If the homeowner does not resolve the situation, the lender can go to court to obtain a foreclosure order. Once granted, the property is usually sold at a public auction to recover the outstanding loan balance. Foreclosure can have lasting effects on a homeowner's credit and financial stability.