Property Foreclosure - for non-payment of loan or mortgage
Some legal charges or mortgage deeds will say that a lender has a right to "foreclose". This means they can enter and take over the property if you fail to pay the loan and the property will then belong to them. Even if they sell the property and there is a balance left over it will not be repaid to you.
Courts in general do not like granting foreclosure orders if a possession order will allow the lender to recover his loan.
Sometimes it may be better for you to try to sell a property instead of the lender, if it is likely the lender will be looking for a quick sale, which might mean a lower sale price.
It is possible to apply to the court for permission to take over the sale of the property yourself, even if there is a negative equity in the property.
Housing Loans (other than mortgages) which are secured on a property