Foreclosure is a legal process that occurs when a homeowner fails to make their mortgage payments. In this situation, the lender, often a bank or financial institution, has the right to take back the property. This means the homeowner loses their house, and the lender can sell it to recover the money owed. During foreclosure, the homeowner may receive notices and have opportunities to catch up on payments, but if they can't, the process continues. Once the property is sold, it may be listed as a real estate asset, often at a lower price, attracting potential buyers looking for a deal.