Foreclosure is the legal proceeding in which a bank or other secured creditor sells a piece of real property due to the owner’s failure to comply on its promissory note. The foreclosure process begins when a borrower/owner defaults on loan payments and the lender files a public default notice.
Foreclosure-rescue firms use public records and paid data services to gather information about homes at risk of foreclosure.
In a foreclosure, a bank might, reclaim title to a property if a borrower has failed to make an agreed upon number of mortgage payments within a predetermined time frame. Both foreclosures and deficiency judgments could seriously affect the ability to qualify for credit in the future. So one should avoid foreclosure if possible.
In most jurisdictions, it is customary for the foreclosing lender to run a title search of the property and to name all other persons who may have liens on the property, so that they may appear and assert their interest in the foreclosure litigation.
