Foreclosure Filing

DEFINITION of 'Foreclosure Filing'

The initial legal process of selling a mortgaged property that is in default. When a borrower defaults in making mortgage payments or otherwise fails to fulfill the terms of the mortgage agreement, the lender can enforce its rights through the foreclosure process.


Foreclosure filings refer to the statutory procedural requirements followed by the lender and all involved parties, including any documentation and court hearings. The procedure depends on state laws.

BREAKING DOWN 'Foreclosure Filing'

There are two main types of foreclosure: judicial foreclosure, where the lender files a case known as a foreclosure filing to obtain an order requiring the borrower to vacate the property; and non-judicial foreclosure, where the lender's first step in the foreclosure filing is the notice of default (NOD).


The foreclosure process for each state is determined by detailed statutory requirements. The foreclosure filing may end with the auction sale of the property, where proceeds are given to the lender and other lien holders. At an absolute auction, the property is awarded to the highest bidder; in a lender confirmation auction, the bank must approve the bid.

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