By definition, a foreclosure is a legal process in which a mortgagee, often the financial institution that made the loan to the borrower, waives the right to redeem the mortgage through a court order. Due to the value of houses, it is difficult for the average individual to pay the cost of a house directly, hence the need to apply for a loan from a lender (bank). Banks and other lending institutions have a number of requirements that a borrower must meet to be approved, such as having to sit at the table with money up front.

To protect their assets, the money they have loaned to a borrower so that they can buy a home, banks require contracts that provide them with a collateral on the property. A security interest is a legal agreement on assets to ensure that the borrower meets certain obligations. In the example of buying a home, banks have legal authority over the home – a security interest – in the event that a borrower defaults on his obligation to pay his debt.

Banks will do everything in their power to pre-qualify borrowers and avoid those they label as “high risk” borrowers and, based on a number of metrics, will make loans to varying degrees to those who are determined to be. lower risk. risk. It is unfortunate that, in light of all they do to pre-qualify potential borrowers, some will still not repay their loans. Regardless of the reason for the non-payment, it is important to understand that if you are already in foreclosure of your home, in reality, the bank does NOT want to take your home, they simply want the money that is owed to you. them. The foreclosure process is generally long and you will not have to move immediately and, in most cases, there is still time to make payment arrangements with the bank and save your home.

If you are under threat of foreclosure with your home and want to save it, it is important that you learn all you can about the foreclosure process, what to do, and how to do it. In most cases, banks are more than willing to work with borrowers who have been through difficult times, but that does not mean that this is the case for all of them. If knowledge is power, then learning all you can can go a long way in saving your home.