Foreclosure is the legal process through which a lender takes possession of the asset, evicts the homeowner and sells the home after a homeowner is unable to make full principal and interest payments on his or her mortgage, as stipulated in the mortgage contract.
These foreclosures tend to be sold under market value as the lender doesn't wish to hold the asset for any extended periods of time. This leads to great opportunities for individuals and companies to purchase these assets for flipping, investment or for owner-occupancy.
Timing is everything with purchasing foreclosures. Check out the latest foreclosure listings on foreclosure.com.