Enforcement
From Open Risk Manual
Revision as of 18:59, 24 January 2021 by Wiki admin (talk | contribs)
Definition
Enforcement 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.
The term is more general than Foreclosure, which is used typically in the context of Morgtage Finance (where the Collateral to the loans is Real Estate)
