Review:
Foreclosure
overall review score: 2.5
⭐⭐⭐
score is between 0 and 5
Foreclosure is the legal process by which a lender takes possession of a property when the borrower fails to make mortgage payments. It often results in the sale of the property to recover the outstanding debt.
Key Features
- Lender repossesses property
- Sale to recover debt
- Legal process
Pros
- Allows lender to recover debt
- Can result in new ownership for properties
Cons
- Can lead to loss of home for borrower
- Negative impact on credit score