The very word “foreclosure” can evoke a sense of trepidation. As a homeowner, you may have been taking steps to avoid this outcome and a last-resort decision. But it’s come time to ask, “What is foreclosure? What happens next? Can you still sell the house?” Whether you work with an experienced real estate agent or explore cash buyer options, acting quickly can help you regain some control of the situation. In this guide, we’ll walk through what foreclosure is, how it works, and the options available to homeowners looking to sell before losing their home to the bank.
Foreclosure is the legal process that allows a mortgage lender to take possession of a property after the homeowner fails to make mortgage payments for an extended period. Foreclosure proceedings typically begin 3 to 6 months after the first missed payment, which is known as defaulting on the loan. In most cases, the lender will try to sell the home to recover the outstanding loan balance. While foreclosure laws vary by state, most lenders must follow a structured process that includes notifying the homeowner, providing opportunities to catch up on payments, and eventually repossessing the property if the debt remains unpaid.What is foreclosure?
