So what is a foreclosure?

A foreclosure is the process in which a bank or creditor repossesses a piece of real, immovable property such as a piece of land, house, or office building. The reason they would do that is because the current owner, who owes the bank or creditor money, is unable to make his or her payments on the property in question. This is also called defaulting on the loan or mortgage. The bank then takes back ownership of the house and attempts to sell it again to get the money out of the property that the previous owner had not paid.

The process itself can be lengthy and painful for the borrower that has defaulted on their payments. Each state varies as to when the process begins, but it starts with the bank claiming title and possession of the property as full payment of the debt owed to them. The house is then usually put up for auction by the county sheriff or some other office of the court. This type of foreclosure is also called a judicial foreclosure. After the auction, the sheriff awards the deed to the winner.