Foreclosure

When a borrower cannot afford to keep up with their monthly mortgage payments, the bank will foreclose on the property in order to recoup the money they lent to the property owner. This involves selling real estate to satisfy outstanding mortgage debt. Although laws vary greatly by state, generally speaking, there are two basic types of foreclosure practiced nationwide: power of sale and judicial. Power of sale foreclosure is a generally faster process and usually involves a deed of trust, held by a trustee who has authority to sell the property in the event that the borrower fails to make payments. Many states, however, require lenders to utilize judicial foreclosure in order to take back property, which requires a judge and can take a year or longer. Bankruptcy can stop foreclosure. Learn how in some of the articles below.