What is a foreclosure?

A foreclosure is essentially a legal process through which lenders reclaim property when the borrower has failed to meet the mortgage obligations, usually by not making the required payments. This process allows the lender to recover the remaining balance of a loan from the borrower who has defaulted on their payments. After a series of default notices and opportunities for the borrower to remedy the situation, the lender has the right to take ownership of the property, often resulting in a public auction where the property might be sold to recover the losses.

The other options refer to different real estate concepts. Selling a property voluntarily does not involve foreclosure but rather a process where the owner chooses to sell their property. Tenant evictions pertain to rental situations where a landlord removes a tenant for violating lease terms, which is distinct from foreclosures that deal with the ownership of property. Refinancing a mortgage involves taking out a new mortgage to replace an old one, usually involving different terms and rates, and does not relate to the reclaiming of property by a lender due to non-payment. Understanding the specific process of foreclosure helps in grasping the broader context of real estate management and financing.