Home loans are backed by the property itself. Foreclosure is the legal process through which a lender enforces a mortgage or deed of trust after default, culminating in sale of the property to satisfy the debt.

Procedures may be judicial, requiring a lawsuit and court judgment, or nonjudicial, following statutory notice and sale provisions in the security instrument. Borrowers typically receive notice of default and an opportunity to cure. Surplus proceeds after paying the debt and costs go to junior lienholders or the borrower; deficiencies may remain collectible in some systems.

Foreclosure timelines and borrower protections vary widely. Loss-mitigation options such as modification or short sale can interrupt the process. Title problems and notice defects sometimes invalidate sales, so lenders must follow the statute carefully.

• Process enforcing a mortgage after default
• May be judicial or nonjudicial
• Ends in sale of the secured property
• Subject to notice and cure rights