Foreclosure is the process by which a lender of a mortgage, hereafter referred as the mortgagee secures the legal authority by either a court injunction or law operation to end the rights of a borrower, hereafter referred as the mortgagor with regard to a mortgage loan. Under normal circumstances, the mortgagee obtains interest of guarantee or security from a mortgagor who puts up real property, in this case a house to facilitate the acquisition of the loan. Under the pre-contract terms, if the borrower by any means deviates or fails to honor the terms and the lender attempts to re-acquire the property, equity court can intervene and grant the borrower the right to redeem their property on condition that they’ll pay the standing debts within a specified period.

In most cases, the breach of the mortgage is an alteration in payment of some paperwork gotten by a mortgagee on the same property. On completion of the foreclosure process, the lender can sell the property and use the funds to compensate mortgage along with other operating costs and expenses incurred during legal proceedings. The contract terms clearly stipulate that if the sale of the property does not yield enough funds to stand cover for principal and other rates, the mortgagee has the right to file for what is known as judgment of deficiency.