Homeowners are familiar with the word foreclosure, yet don’t understand the severity of it.  In this day and age it is important for homeowners to understand the effects of a foreclosure.  A foreclosure is when the lender gets a court ordered termination of a homeowners mortgage.  This forces the homeowner out of the property.  This will remain on a persons credit for the next 5-7 years.  Many times the bank will come after you for the difference in home value and amount owed on the loan.  A homeowner should avoid foreclosure at all costs.