Definition, Meaning & Synonyms

foreclose

verb

/fɔːrˈkloʊz/

Definition

To take possession of a property when the owner fails to meet the mortgage obligations.

Examples

The bank had to foreclose on the home after several months of missed payments.
Investors were concerned that the economic downturn would lead to more homes being foreclosed.
To avoid foreclosure, the homeowner sought out refinancing options.

Meaning

Foreclosing is a legal process whereby a lender seeks to recover the balance of a loan from a borrower who has stopped making payments. It typically involves taking ownership of the property used as collateral for the loan.