Foreclosure is a term for the processes mortgagees use to take mortgaged property from borrowers who default on their mortgages. Foreclosure, like mortgages generally, is governed by the law of the place where the mortgaged thing is.
The foreclosure process may begin when a mortgagor falls so far behind on the mortgage payments that they enter default. The conditions for defaulting vary, based on state law and the terms in mortgage agreements. Once a mortgagor enters default, they start to accumulate late fees, legal fees, and other charges that are added to the outstanding debt, as determined by the mortgage agreement and state law.
But mortgagees do not have to foreclose on mortgages that are in default. They are free to negotiate with mortgagors. For example, they might agree to adjust the terms of the mortgage, refinance the debt, permit the mortgagor to sell the property, or allow the mortgagor to make up for his or her missed payments.
At Jones Obenchain, we have a wealth of experience helping mortgagees foreclose on their property rights. Put our experience to work for you.