Foreclosure
Foreclosure is an option wherein the bank or lender assumes control of your home and you are removed from the property. Sometimes this is your only option. This is not a good situation for both the homeowner or the bank / lender. The lender must pay legal fees, property repair fees, a sales fee and many other fees in order to get the property resold and recoup their loss.
For the former property owner this can have a adverse effect on their credit for many years to come. Before deciding on this option, the homeowner should see if any other options are available including a "Short Sale".