Procedures vary: judicial foreclosure goes through the courts (slower, more borrower protections), non-judicial foreclosure follows a power-of-sale clause in the deed of trust (faster, common in the US South and West). Switzerland uses a federal debt-enforcement procedure (Betreibung) ending in a public auction.
Foreclosure devastates the borrower's credit (a 7-year mark on US reports), often results in deficiency judgments if sale proceeds fall short, and removes the borrower from the home. Loss mitigation tools — loan modification, forbearance, short sale, deed in lieu — try to avoid the worst outcome.
A borrower three months in arrears receives a notice of default; if cure does not happen within the statutory period, the property is auctioned and the borrower is evicted.