Foreclose
Foreclose is a legal process in which a lender or creditor takes possession of a property from a borrower who has defaulted on their loan. The lender or creditor will then sell the property in order to recoup the money that was owed. Foreclosure is a last resort for lenders and creditors, as it is a lengthy and expensive process. It is also a difficult situation for the borrower, as they can lose their home and any equity they have built up in the property.
History of Foreclose
The concept of foreclosure has been around for centuries, with the earliest recorded instances of foreclosure occurring in the Middle Ages. In the United States, the first foreclosure laws were enacted in the early 1800s. Since then, foreclosure laws have evolved and changed over time, with the most recent changes occurring in the wake of the 2008 financial crisis.
Comparison Table
| Foreclosure | Repossession |
|---|---|
| Legal process | Non-legal process |
| Property sold by lender | Property sold by borrower |
| Lengthy process | Quick process |
| Borrower loses home | Borrower keeps home |
Summary
Foreclose is a legal process in which a lender or creditor takes possession of a property from a borrower who has defaulted on their loan. The lender or creditor will then sell the property in order to recoup the money that was owed. Foreclosure is a last resort for lenders and creditors, as it is a lengthy and expensive process. For more information on foreclosure, you can visit websites such as the U.S. Department of Housing and Urban Development, the Consumer Financial Protection Bureau, and the National Consumer Law Center.
See Also
- Mortgage
- Default
- Repossession
- Loan Modification
- Short Sale
- Deed in Lieu of Foreclosure
- Foreclosure Auction
- Judicial Foreclosure
- Foreclosure Defense
- Foreclosure Prevention
