Involuntary Foreclosure Definition
Involuntary Foreclosure means the process by which a lender sells the property used as security for a debt in order to pay off the debt when a borrower defaults on a home mortgage loan. In an involuntary foreclosure, the borrower usually remains liable for the full amount of the debt. If the property is sold for less than the amount owed, the borrower has to pay the remaining balance. This solution is generally the last option for borrowers defaulting on a loan, negotiating a temporary reduction in payments or refinancing the mortgage is used first.