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davidbraken

What Is A Foreclosure?

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It's one of the remedies available to a mortgagee if you default on the mortgage payments. Foreclosure results in the whole of the estate being transferred to the mortgagee (the lender), the mortgagor thereby loosing all his interest in it including any left over money from a sale or any right to redeem.

For these reasons foreclosure is very rare in the UK these days as it's seen as an inequitable remedy. The other reason as to why it's so rare is that foreclosure proceedings can be reopened by a court even after an order absolute and, rarely, even after the property has been sold on. Obviously, this makes a mortgagee reluctant to use foreclosure proceedings and apply for an order for sale instead. I don't know how many properties are actually foreclosed on these days but I'm sure it must be a tiny number.

I would very much doubt that any property you are looking at is actually a foreclosure. It will more than likely just be a straightforward possession job.

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Interesting - thanks. I was under the impression that it was simply the US English term for repossession. Didn't know there was a technical difference and that foreclosure exists in the UK as well (if only in theory).

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