Legal
Foreclosure
The legal process through which a lender takes ownership of a property when the borrower fails to make mortgage payments. Foreclosure severely damages your credit score and can remain on your credit report for seven years. The process varies by state and can take months to over a year. If you are facing foreclosure, explore alternatives like forbearance, loan modification, a short sale, or a deed in lieu of foreclosure.
Why It Matters
Foreclosure has real legal implications for your rights and obligations as a homeowner or borrower. Overlooking the legal details of a real estate transaction can lead to costly problems down the road.
If you have questions about foreclosure, consider consulting a real estate attorney, especially if you are in a state that requires attorney involvement in real estate closings. A small investment in legal advice can prevent major headaches later.