Foreclosure is the legal process banks and mortgage lenders use to regain the balance of a loan, when borrowers stopped making payments on their mortgage loans. When a borrower uses a mortgage to purchase a property, they agree to make monthly payments to their lender until they’ve paid back the loan. If a borrower is not able to make their payments, often due to financial hardship the lender will try to earn back some or all of what they’re still owed by taking ownership of the property and selling it. (The property is used as collateral for the loan) When a property is foreclosed on, the owner is evicted from the property and the foreclosure is recorded on their credit report, impacting their credit score severely.
visit for more information: