 TITLE: How Does a Foreclosure Affect Credit? CONTENT: What Is a Foreclosure?\n----------------------\nA foreclosure occurs when a mortgage lender takes possession of a property from a borrower after the borrower fails to keep up with their loan payments. The lender is legally entitled to seize the property to recover as much of the loan amount as possible.\nHere's what to know about foreclosures and how they can affect your credit. END