Foreclosure Legal Definition Of Foreclosure

Foreclosure is a catch-all term for the processes used by mortgage-holders , or mortgagees , to take mortgaged property from borrowers who default on their mortgages Foreclosure, like mortgages generally, is governed by the law of the place where the mortgaged thing is. Servicers may refer borrowers to specific HUD-approved agencies that provide foreclosure prevention services under the NFMC or HUD Grant programs or they may provide borrowers with a web site address, , to find a qualified agency in their area. In most situations, insurance requirements guarantee that the lender gets back some pre-defined proportion of the loan value, either from foreclosure auction proceeds or from PMI or a combination of those.

WARNING: Since the Notice of Default is recorded as a public document, many fraudulent companies and scam artists search the public records to send defaulted borrowers offers to help” them avoid losing their homes to foreclosure. If …