$(1)$ Although the foreclosure crisis has been covered often by the media, many people are still unclear about how the foreclosure process works or how people threatened by foreclosure lose their homes. $(2)$ The first misstep in the process involves the home purchase itself; specifically, buying a home beyond what the buyer can comfortably afford. $(3)$ Some new homes include luxury features, such as granite countertops, hardwood floors, and landscaped gardens. $(4)$ The second misstep involves the loan terms; eager buyers often become trapped by loans with changing interest rates that start out low and increase dramatically a few years later or loans with low monthly payments that require the entire loan amount to be paid as a $$balloon payment$$ at the end of the loan term. $(5)$ The next misstep involves a dramatic change in the homeowner$$s financial situation$$the homeowner is laid off from work, a family member develops a costly medical condition, or the homeowner gets called to active duty in the military and has not provided for keeping the mortgage payments going. $(6)$ In such circumstances, a smart homeowner can usually seek assistance from lawyers or government and nonprofit agencies that provide advice for individuals facing a financial crisis. $(7)$ However, the fourth misstep that leads to foreclosure is when homeowners postpone seeking assistance until their legal rights have passed, or they walk away from their homes without being able to keep any of their investment. $(8)$ The personal financial crisis of the homeowner moves into the public legal system. $(9)$ The creditor $($the agency from which the homeowner borrowed money$)$ demands immediate payment of the entire balance $($which is impossible for the homeowner$)$ and then files a lawsuit in a court located near the property. $(10)$ If the homeowner does not file an answer to the creditor's lawsuit, then the court rewards the creditor with the property. $(11)$ These four missteps that lead to foreclosure explain the often confusing process of how a buyer loses a home. $(12)$ The home, now officially foreclosed, is sold under court supervision.