# Foreclosure

*Real Estate — Finicade finance glossary*

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.

**Also known as:** repossession, foreclosure process, power of sale

**Related terms:** [Defaulting on a Loan](https://finicade.com/glossary/default-credit), [Short Sale](https://finicade.com/glossary/short-sale), [Mortgage](https://finicade.com/glossary/mortgage), [Lien](https://finicade.com/glossary/lien), [Loan Modification](https://finicade.com/glossary/loan-modification)

Source: https://finicade.com/glossary/foreclosure