Title: What Is a Foreclosure? 4 Things Homeowners Need to Know | realtor.com®
Headings: What Is a Foreclosure? 4 Things Homeowners Need to Know
What Is a Foreclosure? 4 Things Homeowners Need to Know
1. What is pre-foreclosure?
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2. What is foreclosure?
3. What happens at auction?
4. What happens after foreclosure?

Content: If no one buys the home, the lender becomes the owner and the home is considered a bank-owned or REO (real estate owned) property. Typically, the lender then works with a real estate broker to put the property on the market. Generally, REO properties are sold "as is," which means the lender is selling the home in its current condition and will make no repairs or improvements (or give the buyer any credits to fund fix-its). 4. What happens after foreclosure? If you undergo a foreclosure, it goes on your credit report and can drop your credit score by as much as 300 points, or possibly more. This can hurt your ability to obtain a credit card, auto loan, or cell phone plan. A foreclosure remains on your credit report for up to seven years, but its impact to on your credit score will lessen over time. There are also steps you can take to mend your credit score: Pay your credit card bills on time, spend within your means, and don’t take on new debt.