Foreclosure houses come into existence when the homeowners fail to make their mortgage payments in time. Actually, they are generally allowed to make some late payments to a certain period of time with late fee charges. Foreclosure houses happen when the homeowner misses numerous payments and he or she is not able to rectify situation with the payments. But when this period gets over, the foreclosure process starts under which the bank, money lender or the private institution from which the home owner had borrowed money seizes the property and puts it for sale at a public auction. Selling and buying foreclosure houses can prove to be beneficial for both the sellers and the buyers if the deal is done in the right time. The sellers get money when they utterly needed it and also save their credit report and buyers get a house at much lower cost than its actual market value.