What is the "foreclosure process"?

The foreclosure process refers to the legal steps taken to terminate property ownership when a borrower defaults on their mortgage obligation. This situation typically arises when a homeowner fails to make timely payments, prompting the lender to take action to recover the outstanding debt.

Foreclosure involves several stages, including the initiation of legal proceedings, public notice of the default, and eventually the sale of the property to recover the loan amount. This process is governed by state laws and typically requires the lender to provide notice to the borrower, allowing them an opportunity to address the default before the property is sold.

While the sale of a property at auction does occur during the foreclosure process, it is merely one aspect of the broader legal procedure that gives rise to the termination of ownership. The refinancing of a mortgage or tenant eviction procedures do not relate to foreclosure, as they involve different contexts and legal frameworks concerning property and mortgage management. Therefore, understanding foreclosure as a series of legal actions aimed at ending ownership due to default is essential in real estate and mortgage law.