USA HISTORY

Detailed explanation-1: -Foreclosure of property occurs when the borrower defaults on 3 or more monthly repayments of a loan. Ownership of the property mortgaged against the loan is transferred over to the lender, usually a bank, who can legally auction the foreclosed property, selling it to the highest bidder to recover the loan amount.

Detailed explanation-2: -Banks seize properties when they are convinced that the borrower will not be able to repay a loan. After the borrower misses multiple payments, the lender auctions the property to recover the outstanding principal and interest amount.

Detailed explanation-3: -They start the process of seizing the property by enforcing Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (SARFAESI). Even when this act is invoked, the lender gives a borrower two months time to repay the loan.

Detailed explanation-4: -If your property is mortgaged with a bank and if you cannot repay the loan amount on time, the bank has all the right over your property.