What is the meaning of the term forecolsure?

Answer 1

• Foreclosure means legal process by which a lender cancels (forecloses) a borrower's right of redemption of the mortgaged property through a court order (called foreclosure order).
• The court sets a date up to which the borrower can redeem the property by paying off the entire loan balance (including foreclosing expenses).
• Thereafter, the lender is free to sell the property and, upon the sale, applies the sale proceeds first to the due amount and pays the remainder (if any) to the borrower.
• The borrower remains liable for the due amount if the property remains unsold, and for the shortfall if the sale proceeds are insufficient to pay off the entire debt.
• The lender is generally under an obligation to sell the property at or near its fair market value (FMV).
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