What is mortgage foreclosure?

by oliver on September 30, 2010

Question:

What is mortgage foreclosure?

Answer:

A mortgage foreclosure is a process wherein the lender repossesses or takes over a home if the borrower is not able to make his payments current. If the borrower is at least 3 months behind his payments and cannot cope up, the lender can request the permission of the court to foreclose on the property. The time frame of every foreclosure process depends on each state, however, the process usually takes 90 days or more to complete. The process begins when the borrower receive a notice of foreclosure.

After receiving the notice, court hearings will be scheduled. Once the court agrees to continue the foreclosure, a notice of sale will be issued to the borrower. This notice will also be posted in the local newspaper, containing information on the date and location of the sale. During the foreclosure sale, the home or property is sold to the public thru auction. The highest bidder will be the one who can take over the house or property. Prior to the sheriff’s sale, the borrower is given a time period in order to reclaim his home. He can reclaim the property if he pays the full amount of debt owed or works out an agreement with the lender.

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