Title: What Is a Foreclosure and How Does it Work?
Headings: What Is a Foreclosure and How Does it Work?
What Is a Foreclosure and How Does it Work?
What Is Foreclosure?
Why Do Homeowners Go into Foreclosure?
Unforeseen Circumstances
Increased Mortgage Payments
Underwater Mortgage
How Do Foreclosures Work?
Stage 1: Missed Payments
Stage 2: Public Notice
Stage 3: Pre-Foreclosure
Stage 4: Auction
Stage 5: Post-Foreclosure
Buying a Home in Foreclosure or an REO Property
Purchasing from the Homeowner
Purchasing at the Foreclosure Auction
Purchasing from the Bank

Content: What Is Foreclosure? Foreclosure happens when a borrower fails to pay their mortgage payments and the lender or mortgage investor must repossess the home. Foreclosure can also happen when the homeowner fails to pay their property taxes or homeowners association fees. When it comes to understanding foreclosure, there are three terms to know. Foreclosure: the legal process in which a lender or mortgage investor takes back unpaid property
Home in foreclosure: a property going through the foreclosure process
Foreclosed home or REO: a property that has gone through the foreclosure process and is now owned by the lender or bank, also known as a real estate owned property (REO)
During foreclosure, the mortgage lender may seize the property and sell it to recoup the money it lost from the mortgage default. The lender is allowed to take back the home because a mortgage is a secured loan. That means the borrower guarantees repayment by providing collateral.