Mortgage documentation and other servicing issues Foreclosure is a legal process initiated to terminate a borrower’s interest in a property and is permitted only when the borrower has defaulted on the debt obligation for a specified period.
The process allows the lender to sell the property and use the proceeds to satisfy the borrower’s unpaid debt to the extent it is secured by the property. Foreclosure requirements are generally established by state laws and each state has its own statutes, rules, and court decisions pertaining to foreclosures.