When is Foreclosure used?

Understanding what happens when mortgage payments stop. Evaluating a foreclosed property as a purchase.

Can you give examples of Foreclosure?

After missed payments, a lender forecloses and sells the home to recover the debt. A buyer purchases a foreclosed home, often sold as-is, at a competitive price.

Real Estate Term

Foreclosure

The legal process by which a lender takes possession of a property due to the borrower's failure to make payments.

What is Foreclosure?

Foreclosure is the legal process a lender uses to take possession of a property when the borrower stops making mortgage payments, so it can sell the home to recover the debt. The exact process and terminology vary by province, but the outcome is a forced sale, often with the property sold as-is. For buyers, foreclosed properties can offer value, though they carry added risk and fewer seller assurances.