Foreclosure meaning

fôr-klōzhər
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Foreclosure occurs when a homeowner can't make mortgage payments and the bank seizes the home, which was acting as the collateral or security on the loan. The bank then sells the home to try to recover their losses.
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The foreclosure process generally begins when a homeowner falls behind in making their required mortgage payments. A mortgage is a secured loan, unlike credit card debt or a personal loan. The debt is secured by the house, which means that the house guarantees the loan and can be taken if the homeowner doesn't pay. As soon as a homeowner misses a payment, the lender will generally send a letter to the homeowner. The notice will request payment be made and will often include a late fee or other such charge. If the individual pays at that point, the foreclosure process stops. If a payment isn't made, then lenders may continue with the foreclosure process. Usually, this involves phone calls attempting to collect the money. If the homeowner still doesn't pay, at some point the bank or lender will generally send a demand letter demanding payment in full by a set date. If the homeowner does not make payment in full, the home is in danger of being taken. The exact process by which the home is taken varies depending on the state.
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The act of foreclosing, especially a legal proceeding by which a mortgage is foreclosed.
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The legal procedure for satisfying claims against a mortgagor in default who has not redeemed the mortgage: satisfaction may be obtained from the proceeds of a forced sale of the property.
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An action brought by the holder of a security interest in property to terminate the owner’s interest in order to take possession of, or to sell the property, in satisfaction of the secured debt.
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(law) The proceeding, by a creditor, to regain property or other collateral following a default on mortgage payments.
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