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Foreclosure

 Foreclosure is a legal process that occurs when a homeowner fails to make mortgage payments, leading the lender to take possession of the property. Here are some key points about foreclosure: Process: Pre-Foreclosure: This stage begins when the homeowner misses several mortgage payments (typically 3-6 months). The lender sends a notice of default, giving the homeowner a chance to catch up on payments1. Foreclosure Proceedings: If the homeowner cannot resolve the default, the lender initiates foreclosure proceedings. This can be judicial (involving court action) or non-judicial (handled outside of court), depending on state laws12. Auction: The property is usually sold at a public auction. If it doesn’t sell, it becomes a bank-owned or real estate-owned (REO) property1. Impact on Homeowners: Credit Score: Foreclosure significantly impacts the homeowner’s credit score and can remain on their credit report for up to seven years1. Eviction: Homeowners may be evicted from the property once the foreclosure process is complete1.