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 mortgagor’s right to rescue through a court order. Due to home values, it is difficult for the average person to pay the full cost of a home, so it is necessary 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 come to the table with money up front.

To protect their assets, the money they’ve lent a borrower so they can buy a home, banks require contracts that give them a security interest in the property. 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 debt.

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

If you are under threat of foreclosure on your home and want to save it, it is important that you learn as much as 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 fallen on hard times, but that is not to say that this is the case with all of them. If knowledge is power, then learning as much as you can can go a long way toward saving your home.