Tips to Avoid Foreclosure When we fail to make our mortgage payments, foreclosure may occur. Foreclosure is the legal means that a lender can use to repossess, or take over, a home. When this happens, we must move out of our home. If our property is worth less than the total amount we owe to the bank, a deficiency judgment, which is a ruling made by a court against a borrower who does not have enough funds to pay back their loan, could be pursued against us. If that happens, we not only lose our home, but we also then owe our lender additional fees. Both foreclosures and deficiency judgments could seriously affect our ability to qualify for credit in the future. Read more
