Why Do Foreclosures Happen?

Foreclosure happens when a borrower fails to pay their mortgage payments and the lender or mortgage investor must repossess and then sell the home. Foreclosure can also happen when the homeowner fails to pay their property taxes or homeowners association fees.

What is the biggest cause of foreclosure?

Major reasons for foreclosures are:

Debt, particularly credit card debt. Medical emergency or illness resulting in a lot of medical debt. Divorce, or death of a spouse or partner who contributed income. An unexpected big expense.

What triggers a foreclosure?

A foreclosure is the legal process by which a lender takes possession of a property and sells it when the homeowner fails to make their mortgage repayments. ... It is the period of time between when a homeowner misses their first repayment, and the date when the lender begins their legal proceedings.