What is foreclosure litigation?

Foreclosure litigation refers to the legal process that occurs when a lender seeks to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the property used as collateral. This process often involves court proceedings, where both the lender and the borrower can present their cases. Borrowers may use foreclosure litigation to challenge the foreclosure, negotiate loan modifications, or assert defenses such as improper loan servicing or violations of foreclosure laws. The outcome can result in the property being sold at auction, the borrower retaining the home, or a settlement being reached.