What is Foreclosure Information?

Foreclosure is a legal procedure by which an owner's right to possess a piece of real property is extinguished by a forced sale. The owner typically must default on a loan before foreclosure can occur. Foreclosure statutes require notice to the owner and allow a period of time during which the owner has a right to redeem the property by tendering full payment. At foreclosure, the property is sold at a street auction, usually in front of the county courthouse, and the proceeds of the sale go to the mortgage holder. Government agencies can bring foreclosure proceedings if HUD, for example, holds the mortgage. Foreclosure destroys an owner's equity in property.