Foreclosures / Repossession

When lenders foreclose, it means that lenders have terminated mortgage contracts (usually real estate mortgages) because borrowers have defaulted on contracted repayments or in some way have breached the mortgage contracts.
This results in property that had been placed as security against loans becoming the possession of the lenders—repossession—allowing the lenders to sell the properties in order to recover the money they originally loaned.
A breach exists when borrowers fail to make repayments of principal and interest when such repayments are due; when mandatory insurance, taxes, or assessments are delinquent; if the balance of a note is due, failure to make the principal payment plus interest by the maturity date; or transferring the property without the lender's approval.
Because a foreclosure will stay on borrowers' credit files for a minimum of seven years and perhaps as long as 10 years, if borrowers fall behind on mortgage payment, they should make every effort to sell the house even if it has to be sold at a loss. (Read More)