What is a Foreclosed House?
Foreclosure is a legal process by which the creditor takes possession of a property, which was kept as security for a loan. When the borrower defaults in paying the loan within the stipulated time, the lender files a case in a court of law. A foreclosure is done with the intention to possess the property or even sell it off to recover the loan. A foreclosed house comes at a lower price than the market value. Buying a foreclosed house may look attractive, but it is necessary to understand the process for buying a foreclosed home, otherwise you might end up paying more than the actual price of the house. A foreclosed house is one that has been taken into possession by the lender, due to default in the payment of either a loan or a mortgage by the borrower. The house had been kept as a security for the loan and the borrower can sell it off to recover his dues. A foreclosed house is usually sold off at a price similar to the loan amount with any interest accrued on the loan and other payme
