What Exactly Is A Foreclosure.

The foreclosure process from start to finish varies from state to state. The process in any state begins when the homeowner fails to pay or perform under the contractual terms outlined in their mortgage or deed of trust. Since the mortgagor, which is a bank in most situations, does not own the property (yet) they can not simply repossess the house the way a car dealer would and evict the homeowner for non payment. The lender must initiate a foreclosure by filing foreclosure lawsuit or notice of default and go through a proceeding to repossess the collateral that was pledged (the house) in exchange for the loan.