What Is Foreclosure?

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A home foreclosure is a legal proceeding in which a bank or lender attempts to recover money from a home loan when the homeowner cannot make payments on the loan. Foreclosure allows the bank to sell the property in order to recover that money. Find out more about home foreclosures with information from a mortgage broker in this free video on home foreclosure.

Part of the Video Series: Home Equity Loans & Foreclosures
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Video Transcript

Hi my name is Matt McKillen. I'm with Innovative Financial Group. The question posed to me today is what is foreclosure. Foreclosure is the legal proceeding that a lender or a bank can take against a borrower to recover monies that are owed on the mortgage and the note that the borrower promised to pay back. In some states it is done through the mortgage securing the property. In other states it may be a deed of trust or a trustee securing the loan to the property. In either case basically what it is is that if you fall behind on your payments the bank has the ability through foreclosure process which is a law suit to sue the home owner, go to the courts for permission to sell their loan or sell the property at a public auction sale in order to get their mortgage paid off or their loan paid off in the event that the borrower does not pay them back, does not sell the property to pay the loan off or cannot come up with the arrearages to clear the default. Again a foreclosure is a legal action taken by your lender to recover the monies that were owed to them that were lent through a note and secured to a property by a mortgage. Again my name is Matt McKillen and I'm with Innovative Financial Group.


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