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A foreclosure property is real estate that a mortgage lender sells to pay off a defaulted mortgage loan. 

Lenders foreclose on property to satisfy the outstanding balance on a mortgage loan. For example, if you borrow money from the bank to purchase a home, the bank has the right to sell the home if you don't make mortgage payments as agreed.

For real estate investors, buying foreclosures provides the opportunity to buy property at prices below market value. 
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