Foreclosures have been a part of the real estate industry for many years. A foreclosure is a process in which a bank or lending institution seizes a property from a borrower in order to satisfy the mortgage debt. This is done when the borrower has not been able to make payments for three consecutive months nor get up to date on the payment schedule. While foreclosures have been quite common in terms of dealing with delinquent mortgage borrowers, it has a considerable amount of obstacles. These obstacles include difficulty in making a sale at an auction, lost money, losses for mortgage investors and also having to go through a long process to complete a foreclosure.
During the Great Recession, there were a number of foreclosures that were being made. According to data, 4 percent of houses in the United Sates were foreclosed from 2007 through 2010. Over the past few years, there has been a recovery as the foreclosure rate dropped significantly during this time. Today, the foreclosure rate is only half of a percent of households in America. With this improvement, more people are holding onto their homes and staying current on their mortgage. However, foreclosures are always a possibility when the real estate market and the economy begin to decline.