Foreclose

To take legal possession of a property, especially a mortgaged property, when the borrower fails to uphold their end of the mortgage agreement. This typically involves the lender seizing the property, selling it, and using the proceeds to pay off the outstanding debt. The process can extend beyond real estate, applying to various collateral such as businesses and assets. Legally, it terminates a borrower's rights to the property and can severely impact their credit history. The goal is to recover the lender's investment and mitigate financial losses arising from the borrower's default.

Foreclose meaning with examples

• After months of missed payments, the bank initiated proceedings to foreclose on the homeowner's property. This involved serving notices and ultimately taking possession, leaving the family scrambling for new housing arrangements and causing them much stress.
• The small business was unable to meet its loan obligations, and the lender decided to foreclose on its assets, which included the building, equipment, and remaining inventory. This put many of the employees out of work.
• Due to the economic downturn, many homeowners faced the risk of banks **foreclosing** on their properties. Many families struggle to keep their houses due to lost jobs, the resulting lack of income, and subsequent inability to make payments.
• The investor's failure to adhere to the investment terms triggered the ability for the fund to foreclose on their share. It allowed the fund to take control of the holdings.
• After the developer defaulted on the construction loan, the bank decided to foreclose on the partially completed condominium project. Construction stopped and would likely only recommence under new ownership.