What is a foreclosure?

Foreclosure is a legal process in which a lender takes possession of a property due to the borrower's default on their mortgage payments. It is typically initiated by the lender when the borrower fails to make timely payments as agreed upon in the mortgage contract. Foreclosures can result in the loss of the property by the borrower and can have significant financial and legal implications. Here's a closer look at what foreclosure entails.