Foreclosure is a legal proceeding that bars or extinguishes a mortgagor's right of redeeming a mortgaged estate.

The foreclosure process as applied to residential mortgage loans from a bank or other secured creditor selling or repossessing a parcel of real property after the owner has failed to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, the lender can sell the property. Often times, if the promissory note was made with a recourse clause, and the sale does not bring enough to pay the existing balance of principal and fees, the mortgagee can file a claim for a deficiency judgment.

Failure of payment is not the only reason for foreclosure, it also includes unpaid taxes, and unpaid contractor bills.

Filing Bankruptcy can stop foreclosure proceedings and give you time to come up with a plan through the courts. You should contact an attorney on the first notice of foreclosure.