Foreclosure
A lender’s legal process of taking possession of a property after default.
Detailed Description
Foreclosure
What is the main reason for foreclosure?
The main reason for foreclosure is when a borrower stops making mortgage payments, leading the lender to recover the loan balance.
What are the two main types of foreclosure processes?
The two main types of foreclosure processes are judicial foreclosure and non-judicial foreclosure.
How does foreclosure impact a borrower's credit score?
Foreclosure can lower a borrower's credit score by 100 points or more and can remain on their credit report for up to seven years.
What rights do borrowers have during foreclosure?
Borrowers have rights such as receiving a notice of default, contesting the foreclosure in court, and requesting loan modifications.
What are some strategies to prevent foreclosure?
Strategies to prevent foreclosure include communicating with lenders, seeking loan modifications, requesting forbearance agreements, and selling the property.