Foreclosure >> Back to glossary
Foreclosure is a word that far too many people that are in financial trouble are presented with. It is a legal proceeding that allows the lender of money to take back the property that they financed, because the individual who made the purchase and negotiated the loan could not make the agreed upon payments. Or in some cases, were making payments but not according to terms of the contract.
The process of foreclosure does take some time to implement, but usually not long enough to allow the borrower to get themselves financially stable or to make alternative arrangements to lessen the dire situation they are in. One of the worse forms of foreclosure is that which takes place on the primary residence of an individual.
Many people who have purchased their homes and have arranged a mortgage were at the time financially stable and had no difficulty meeting their payments. Then unforeseen circumstances arose such as losing their job or illness perhaps, and they could no longer make the payments. The financial institutions holding the mortgage then simply seize the property after a short period of time of non- payment. They then have the right to resell the property so they can recoup the balance of money owed to them. The borrower is then forced to move once the residence or property has been seized by the lender. This is devastating for any person that is in this financial disaster. They no longer have their home no matter how much they have paid into it, and usually don't have enough money to find alternative living quarters. When you hear of home owners who have been put out on the street, then you most likely have heard of someone who has been subjected to foreclosure.
It is most important to protect such an important asset, and no matter what your financial difficulties, do not fall into the trap of using your home to dig yourself out of your financial disaster. Often people will resort to a home equity loan to do some debt consolidation. This is done when they are panic stricken about their situation, and they don't have the expertise in finances to realize it may only be a quick fix or a partial solution to their financial problems. As a result they are still not able to meet their financial obligations, and they end up losing their home.
The professional finance experts that will become available to you once you fill out our form here at DebtCafe USA, will address any foreclosure issues that you may be facing. In fact you may not even be aware that you could end up in a foreclosure situation. This is not a risk you want to take. If you have any debts that have been secured by your home or other assets, then you need to speak to our debt solving experts as quickly as possible.
