GLOSSARY OF TERMS
Foreclosure is the process in which a lender takes possession and initiates the sale of real estate belonging to a borrower who has stopped paying the lender according to their agreement. Foreclosure protects the lender from the borrower's default on loan payments, as well as other specifically defined situations described in the note and mortgage, security deed or deed of trust.
A lender is not required to accept late payments unless special provisions have been made. Foreclosure can be a result of the transfer of the borrower’s interest in secured property without the lender’s prior written consent. Default can be triggered by damage to the real estate, non-payment of real estate taxes or insurance, the removal of timber, and more.
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