Understanding Foreclosure

The Process Varies by State

Consequences

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1. Absolute Auction

1. Bank-Owned Residential or commercial property
2. Deed in Lieu of Foreclosure
3. Distress Sale
4. Notice of Default
5. Other Real Estate Owned (OREO)
   
   What Is Foreclosure?
   
   Foreclosure is the legal procedure by which a lending institution tries to recover the amount owed on a defaulted loan by taking ownership of the mortgaged residential or commercial property and selling it. Typically, default is triggered when a customer misses out on a particular variety of monthly payments, but it can likewise take place when the debtor stops working to fulfill other terms in the mortgage file.
   
   - Foreclosure is a legal procedure that allows lenders to take ownership of and sell a residential or commercial property to recover the quantity owed on a defaulted loan.
   - The foreclosure process differs by state, but in basic, lenders try to work with customers to get them captured up on payments and prevent foreclosure.
   - The most recent nationwide typical number of days for the foreclosure process is 762