Foreclosure is the legal step taken by any bank or finance institute to claim the property or any immovable property. It could occur due to the failure of the owner to stick to the agreement he made with the bank or financial institution. This agreement could be ?mortgage? or ?deed of trust?. The foreclosure would take place unless bankruptcy is filed. The foreclosure process would start once you fail to make your regular payment to them. You would get a notice stating that you have not paid and request you to pay immediately. They would wait for about two or three months and then they would issue a Notice to Accelerate. At this point you would be required to pay the pending payments altogether and they would not accept any partial payments. Any late fee that is applicable should also be paid immediately. In case they proceed further, sometimes the attorney fee also will be added to the loan amount.
[tags]Prepayment, Foreclosure Penalty, Bankruptcy, Mortgage[/tags]