Foreclosures and Short Sales

What Is Foreclosure?

It is a series of events that begins when a homeowner defaults, or stops making mortgage payments. Usually because of a life crisis which impacted their income (examples: death, disability, divorce, etc.) or because their loan payments increased beyond their ability to pay them (example: when an adjustable rate mortgage begins to adjust). The series of events ends when the mortgage holder sells the home at auction, or takes the home back from the owner.