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When is a property foreclosed?

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A property is foreclosed when a lienholder takes legal title to the property as compensation for delinquent debt .  Most commonly, foreclosures are done by banks, and more often than not, the holder of a first mortgage on the property.  However, foreclosure may be pursued by a number of creditors, including the holder of a second or third mortgage, the IRS, state, or city for owed taxes, or even condo associations for delinquent condo fees.

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