Foreclosure happens when the bank or the lender sells or repossesses a property used in the mortgage loan, or a deed of trust, in which the owner fails to comply with his or agreement with the bank or lender. It is always important for the borrower to know the terms and conditions of the mortgage loan.
For new investors, one of the most difficult hurdles to overcome is learning the ropes of the real estate business. Real estate transactions are complicated, and if you are not educated on the ins and outs of the business, you potentially could lose large amounts of money, fast. Before you get started in real estate investing, spend some time thinking about the best approach for your financial situation, personality, and risk tolerance.