Definition of Foreclosure

When a borrower stopped making payments to the lender and lender starts forcing to recover the loan given to the borrower earlier is known as foreclosure.


To recover the loan from the borrower is always a legal process. The basic knowledge on foreclosure is that when a person is in dire need of a loan, he/she borrows it in a legal process as a legal entity. The borrower could borrow it from any other person or bank.


After that borrower gets some specific time to return the loan to the lender party. If the borrower fails to give back the loan in time, all the mortgaged property will get sealed and becomes the property of the lender. Therefore, foreclosure is the process where borrower stops giving payments to the lender.


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