What is the difference between a foreclosure and a real estate dispute?

A foreclosure and a real estate dispute are two different types of legal proceedings in California real estate law. A foreclosure is initiated by a lender when a borrower has failed to make agreed upon mortgage payments. The lender uses the foreclosure to regain ownership of the property and recover the loan balance. A real estate dispute is a legal dispute between two or more parties over any aspect of real estate law. This can include matters such as title disputes, boundary disputes, and contract disputes. A foreclosure is a less expensive and less time consuming process compared to a real estate dispute. In a foreclosure, the lender is essentially foreclosing on the property, meaning they take it back and sell it at an auction. If an auction fails to reach a price that covers the loan balance, then the borrower is responsible for the difference. In a real estate dispute, the parties must bring suit and a court can make a determination on how to resolve the dispute. This can be more complex and costly as there is more involved than a simple sale of the property. In summary, a foreclosure is a lender initiated process to recover unpaid loan balances, whereas a real estate dispute is a dispute between two or more parties over a variety of real estate related matters. A foreclosure is typically less involved and less expensive than a real estate dispute, as the lender simply seeks to regain the property and recover the loan balance. A real estate dispute requires further court proceedings in order to make a final determination on how to resolve the dispute.

What is the difference between a foreclosure and a real estate dispute?

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