With the collapse of the sub-prime mortgage market in the summer of 2007, numerous properties went through the foreclosure process. According to RealtyTrac, the number of foreclosed properties increased 79% over the previous year's number. At one point, there were as many as 1 out of every 100 properties in some stage of the foreclosure process.

Foreclosure is the legal process which allows a bank or other lending institution or creditor to sell or repossess a parcel of real or immovable property such as a house after the owner has failed to comply with the terms of the mortgage or "deed of trust." The most common violation of the mortgage is defaulting on payment of a promissory note which has been secured by a lien on the property.

A default occurs when a debtor has not met the legal obligations according to the debt contract such as not making scheduled payments. A promissory note is a contract which details the terms of a promise made by one party to pay a sum of money to the other party. A lien is a form of security interest granted over an item of property to secure and to ensure the payment of a debt.

At the end of the foreclosure process, the lender can sell the property and keep the proceeds to pay off its mortgage and any legal costs. There are two broad types of foreclosure, judicial foreclosure and foreclosure by power of sale.

Judicial foreclosure is available type. In this type of foreclosure, a judge or court will supervise the sale of the mortgaged property. The proceeds from the sale are used to pay off the mortgage then any other lien holders. Any left-over money after all the debts on the property are paid goes to the borrower.

Prior to the start of the proceedings, all parties must be notified of the foreclosure. The judge will announce his or her decision concerning the foreclosure process is announced after pleadings at a generally brief hearing. The judge can determine whether or not the foreclosure process needs to go through.