What is a foreclosure?
Foreclosures get talked about all the time on the news and on thousands of different websites all across the internet, but all of this talk is worthless if you do not understand the basic concept.
When you buy a home you are generally going to be getting a mortgage. After all, do you have 150-300k sitting in your bank account? People like to talk about how they own a house after getting a mortgage, but unfortunately most of the house is still owned by the bank, or whoever your lender was.
If you fall on hard economic times, like many have over the past 2 years, and cannot make your monthly mortgage payments, there is a good chance that your home will enter a foreclosure.
This is where the bank virtually kicks you out of your home and then tries to sell it to cut their losses.
Banks do not win in this situation, they have to sell an asset of theirs for less than it is worth. Homeowners obviously do not win either, they lose their home in most situations.
This process is the reason that I created this website. I want to do everything that I can to inform my readers about foreclosures and loan modifications as well as attempt to prevent foreclosures.