Foreclosed

The term 'foreclosed' describes the legal process by which a lender takes possession of a property, often a home or business, because the borrower has failed to meet the agreed-upon terms of a mortgage or loan, such as failing to make payments. This typically involves a court order and eviction. The property is then usually sold to recover the outstanding debt. The process can have devastating financial and emotional consequences for the borrower. Sometimes this can also apply to an estate.

Foreclosed meaning with examples

• After months of missed mortgage payments, the bank finally foreclosed on the Smith's home, leaving them with nowhere to live and a severely damaged credit score. They were shocked that their home had actually been foreclosed, it felt like their whole life had been taken away. The stress of losing the house and not knowing what to do next was all consuming.
• The company was forced to file for bankruptcy when it failed to pay back its loans, and the bank foreclosed on its assets, including the factory and equipment. The employees all lost their jobs, and there was nothing they could do about it. The thought of not being able to pay back the loan had kept the owner up all night.
• Due to a downturn in the economy, many small businesses struggled to stay afloat. As a result, numerous properties were foreclosed, leading to vacant storefronts and increased unemployment within the community. They also started closing down several business to cut costs. The process of shutting the businesses down took about 6 months.
• Following the death of the owner, and after no one could make the payments, the bank foreclosed on the estate, liquidating all of the assets to cover the outstanding debts and taxes. None of the family could afford to pay off the mortgage. All of the family heirlooms that they used to cherish were gone.