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A foreclosure is a legal procedure where a lender sells a property securing a mortgage loan at a public auction or sale to repay a borrower's defaulted loan. Foreclosure proceedings typically begin after you have made no payments for 60 days or more. If there are no successful third party bidders at the foreclosure auction, title to the property will be transferred to the lender, which may then market and sell the property (known as an REO property) to recover its losses on the loan.
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