What is a mortgage foreclosure and how does it affect a real estate dispute?

A mortgage foreclosure is a legal process when a home loan is not being paid. It happens when a homeowner fails to make payments on their mortgage and the lender or loan servicer files a lawsuit against the homeowner. The lender is then able to take possession of the property and then sell it to recoup any losses due to the delinquent payments. In California, a homeowner facing a foreclosure can choose to file for bankruptcy or to defend their rights in court. If the homeowner chooses to defend their rights, a real estate dispute can arise. This dispute will usually revolve around whether or not the foreclosure was done legally, such as the lender not following state laws regarding the foreclosure, or if the homeowner has a valid legal defense, such as the loan being predatory. The outcome of a real estate dispute can be very consequential. If the homeowner is successful in their defense, the foreclosure can potentially be halted, allowing the homeowner to continue to make payments on the mortgage and remain in the home. If the lender is successful, they will be able to take possession of the property and sell it to try and recoup their losses. In either scenario, the homeowner could end up with a negative mark on their credit due to their missed payments or for having to go through the dispute process.

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What is a mortgage foreclosure and how does it affect a real estate dispute?

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