Archives for October 2012

Foreclosure

Foreclosure is the legal proceeding against the property.  This happens when you have not been paying your mortgage.  When you signed the mortgage you gave the bank the right to foreclose if you failed to pay them.

What is a Lien

A Lien is a legal right your creditor has in your property.  It ensures you will pay your debt.  A lien can be enforced (you lose the property) if you do not pay the debt.

The bank you pay your car loan to has a lien on your car.  The bank will repossess your car if you do not pay the loan.

A home mortgage is a lien.  It gives the bank the right to take your house through foreclosure.