Foreclosure
Foreclosure is the legal procedure in which a bank or mortgage sells or repossesses real estate property because the owner did not fulfil its promise to pay for the property.
The bank will claim title and take possession of the real estate property. The property will be offered for sale via auction by the county sheriff or other officer of the court.
The person who owned the property might owe less money than the property is worth, and the sheriff or appointed court officer is supposed to protect the equity the debtor has in the property.
This is to protect the equity of the debtor.
In a foreclosure, the sheriff issues a deed to the winning bidder at auction.
In nowadays tight economic conditions, the banks and other institutional lenders typically bid in the amount of the owed debt at the sale, so that they get their money out of the deal. If no other buyers step forward the bank or other creditor gets title to the immovable property in return. If other bidders step in, and bid a higher amount, the bank or other secured creditor will have its money out of the deal.
