What is a FORECLOSURE?
Most people buy home by borrowing part of the purchase price usually from a bank or mortgage company. Other times, a homeowner borrows money against the equity in the property after the home is purchased, and this is called a "home equity loan". Sometimes people refinance their mortgage loan and combine it with a home equity loan. In all these situations, the lender usually has a lien against the home to secure repayment of the loan. When a buyer fails to make the payments due on the loan (defaults on the loan) the lender can foreclose, which means that the lender can force a sale of the home to pay for the outstanding plan.
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