What if someone will borrow money from you? Then the amount is too big that your insight will tell you that he /she (the debtor) can't pay within the time agreement (or can't pay anything at all). The usual thing you will do is to make a signed agreement that a property of him/her is at stake with the transaction. The two of you is creating what a mortgage. It is a loan agreement secured by a property. If he/she will veto the agreement, you can pursue a foreclosure to the property and it will be yours. This is how the foreclosure comes as a claim for security.
Foreclosure is a legal method by which the mortgage agreement acquires a court order that the property is now in the hands of the creditor. This method is applied to housing home loans, banks, and some guaranteed creditors. If the owner will fail to pay his/her liabilities from loan provider, the lending entity can call for a foreclosure. This means that violation in the mortgage will result in unwanted circumstances in the side of the debtor. Unpaid taxes will lead in foreclosure too. The county government will look for a way so that it can collect delinquent taxes (unpaid taxes). Foreclosed properties are on sale in auctions. The situation is not good because in some laws the original owner is not allowed to participate in the auction of his/her foreclosed property.
The sale of foreclosed properties might be a good attraction for any investor. This is not surprising because the property's prizes are lower or reasonable. Many individuals acquired their homes from foreclosure sales. These properties are advertised in local Medias within the proximate area. If you happen to be interested on these investments, you can go to your local tax collecting agency or to the respected brokers who are willing to help you gather some information.