What Should You Know About Foreclosure Rights?
If a borrower stops making their mortgage payments, then the lender may foreclose on the loan and seize control of the property. When a borrower cannot pay monthly mortgage payments as agreed upon, the lender or association may use their foreclosure right and take possession of the property. Take the case of a homeowner who borrows $400,000 for a single-family residence and pays $2,600 monthly through mortgage payments. The buyer is given loan approval based on their salary and other financial details. A buyer's ability to make mortgage payments is contingent upon their continuing employment. If the buyer leaves their job and continues to fall behind on payments for an extended period, the bank may foreclose and sell the property.