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Mortgage Knowledge Base Mortgage Glossary Foreclosure

Foreclosure

Foreclosure is a legal process, in which a borrower is deprived of his/her interest in mortgaged property when he defaults on paying mortgage loans.

Features:

  • Here the mortgaged property is sold to pay the loan of the defaulting borrower.
  • It involves a forced sale of the property at public auction.
  • The money from the property's sale is applied to the mortgage debt.
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