What is Foreclosure and Where can You Find Help?

What is foreclosure? The basic definition of foreclosure is the legal process where a lender demands the sale of real property that was guaranteed as a security for the debt owed to the lender when the debt has not been paid in full.

Basically, a foreclosure is taking your right away to redeem your mortgage. That means when you miss a few payments on your mortgage to your lender, your lender has the legal right to demand payment (usually the entire amount you are behind in payments) or take the property from you if you don't catch the account up.

Of course, the worse of the two is losing your property, which is a direct result from not making your account current by the foreclosure date.

There are several different kinds of foreclosures in the United States and the processes differ from state to state, but there are basically two primary types of foreclosures you need to worry about. They are judicial and non-judicial foreclosures.

A Trustee's Sale Proceeding is another name for a foreclosure.

A foreclosure usually happens when you, as a borrower, don't make your payments on time or at all and you start to get behind. Most people don't generally skip a mortgage payment unless something else happens in their life to warrant the situation. This is known as a hardship. If you fell behind in your payments because of a hardship, there is help available for you to get you back on track!

What is foreclosure? It's not the end of your financial security. It's a bump in the road that can be smoothed over with the proper techniques.