Foreclosure
Also called: repossession, foreclosure process, power of sale
Foreclosure is the lender taking and selling a property after the borrower defaults. Processes differ sharply: judicial foreclosure requires a court and takes many months, while power-of-sale states move far faster. It devastates credit for seven years and often leaves a deficiency balance if the sale doesn't cover the loan. Lenders lose money on nearly every foreclosure, which is why they will usually modify first.