Foreclosure is a legal procedure whereby property pledged as security for a debt is sold to pay the debt in the event of default in terms of payment/s. When a person fails to make timely payments on a property which is mortgaged as security, the bank or any other financial creditor may sell the said property to recover the default amount. The original method of foreclosure was strict foreclosure. Under this method, when the homeowner fails to pay the loan, the bank or financial creditor gains the mortgaged property automatically without selling it within a certain period of time. But now it is available in few places only. The widely used methods of home foreclosures are foreclosure by judicial and non-judicial home foreclosure. In foreclosure by judicial, entire processes are carried out under the supervision of a court. Here the sale of the mortgaged property is done in a short trial by pleadings and various judicial decisions. But a non-judicial foreclosure does not involve court supervision. It is also known as foreclosure by power of sale. Here an agreement is formed in which either the homeowner can stop home foreclosure by paying back the amount or the payments can be delayed for sometime subject to prior consent of both parties in question, that is borrower and lender. A home foreclosure occurs when the borrower fails to pay the mortgage expenses and the lender or the banker decides to execute the terms of the mortgage to recover his loss by putting the borrower’s house for sale. When the borrower fails to pay the due then all the power and the control of his home goes in the hand of the lender or the banker who had given him loan, then the mortgage company or the bank, to get back his balance amount forces to put the borrower’s home for public sale through auction. There are many ways how a borrower or the homeowner can be safe of home foreclosure.
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