A foreclosure occurs when a property owner can’t make payments on their loan, leading to the property being seized and sold by the lender.
If you can no longer afford to make your mortgage payment, the most important thing to do is communicate with your lender(s). Simply walking away is not the answer. Foreclosures bring severe consequences, including:
- Legal fees
- Damaged credit rating
- Difficulty finding alternative housing due to bad credit
- Lower property values in neighborhoods