When a borrower or misses a significant number of mortgage payments (which is known as default), the lender may chose to foreclose the homeâ€”repossessing or selling it.
Mortgage lenders usually consider a mortgage to be in default when payments haven't been made in three or four months.
When a mortgage loan is in default, the mortgage lender usually start the foreclosure proceedings of the property.
There are three types of foreclosures:
As a buyer I recommend that you consult with a good realtor in person to advice you on how to save money in todays market.
Ute and Artur gave you a great definition.
Let me ad it depends what part of the country you live, to determine how long the process will take.
In AZ the process can be done in as little as 90-120 days.
In Illinois and New York, the process can take 365 days plus
A foreclosure, is the legal process by which an owner's right to a property is terminated, usually due to default. The organization who lent on this home takes ownership and sells it with the proceeds being applied to the mortgage debt (if there is any).
"a legal process in which mortgaged property is sold to pay the loan of the defaulting borrower".
Let us know if you need more information.