Foreclosure

Definition

Foreclosure is one possible end-state in a lending relationship where a lender attempts via a legal process (in court) to recover balances of loans extended to a borrower who has stopped making payments. The main mechanism for recovery is the forced sale of the asset that used as the collateral for the loan (mortgaged).

See Also

• Foreclosed Asset
• Enforcement
• NPL Glossary
• Wikipedia Entry

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