Tagged : Real Estate Foreclosure

The word foreclosure is not a pleasant word in the world of real estate for either the lender or the mortgage holder. Foreclosure essentially means the mortgage is being terminated, typically because of lack of payment of the part of the mortgage holder. Foreclosure proceedings can also refer to the process of the government foreclosing on the property owner for unpaid taxes.

Most mortgages, whether for commercial or residential real estate, operate on the basic principle of borrowing money from a bank or other lending institution for the purchase of property. The bank needs to secure the money they have lent, so this requires security, which is often the property itself. The lending institution is then relatively safe in the event the mortgage holder…