Foreclosure Terms

Foreclosure:

Foreclosure is the legal process by which an owner loses their right to property, usually due to default.  The foreclosure process typically involves a forced sale of the foreclosed property, often by public auction, with the proceeds applied to the mortgage debt.

Forbearance:

Forbearance is a lender's postponement of foreclosure in order to give the borrower time to catch up on late mortgage payments.

Judicial Foreclosure:

 Judicial foreclosures are those which require the lender to take the borrower to court in order to foreclose on the property in default.

Non-Judicial Foreclosure:

Non-Judical Foreclosures are those in which the mortgage deed contains a power of sales clause allowing lenders to foreclose on a property outside of the court system. 

Right of Redemption: 

 Right of redemption is the right of a homeowner to avoid foreclosure by paying off the amount due the lender on the mortgage.