When a home mortgage has become past due, lenders like banks tend to repossess the house from the borrower. This is what's referred to as a foreclosure. Normally, when you borrow money to buy a physical property such as a house or car, you agree with the lender that you will make timely payments on a specified time period. Once you failed to do so, foreclosures can be initiated.
Source: http://EzineArticles.com/7002341
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