What Is the Foreclosure Process?

Foreclosure of a house means termination of redemption of a house that has been mortgaged.

Foreclosure

The so-called foreclosure is due to the lender's inability to repay and the loan institution forcibly repossessed its house. It's like offering a house. If the owner is unemployed and cannot afford a monthly payment, the lender will take the house back to the auction to repay the remaining loan.

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House foreclosure is actually called abroad, especially the word "foreclosure". When you buy a house in China with a down payment, you will gradually repay the loan. Although the house is still mortgaged to the bank, it feels that the house is yours, and the relationship with the bank is just repayment. In foreign countries, it is the same, but the attitude is different. They feel that the house is mortgaged to the bank, and they need to redeem it by repaying the loan. So once the relationship ends, it's called foreclosure.

For example, most Americans use a mortgage when buying a home. Since some buyers have no assets to mortgage, the home they buy acts as collateral. The ownership of the house belongs to the institution providing the loan. Buyers make repayments to lenders on schedule, a process known as "redemption." If the buyer fails to repay the loan on time due to some reason, the house overdue will be "foreclosed", the redemption will stop and the house will be owned by the lender.

Since the 2008 economic crisis in the United States, the number of people unable to repay loans has continued to increase. The number of foreclosures in 2009 was close to 3 million. According to industry insiders, the foreclosure rate will peak in 2010. In April and May of 2010, the number of foreclosures was continuously refreshed. In October, local governments set off a wave of foreclosure bans on houses. The US government has since said that it will jointly investigate bank foreclosure issues.