real estate

foreclosure

The legal process by which a lender takes possession of a property when the borrower fails to make mortgage payments.

Example

"After missing six months of payments, the bank began foreclosure proceedings on the house."

💡 Memory Tip

FORE-closure — the FORE (bank) CLOSES the door on you. You lose the property.

Etymology

From Old French 'forclos' meaning 'excluded, shut out' — the borrower is shut out of their home.

Common Misspellings

foreclousureforeclosuerforclosureforclousure

Related Terms

mortgagedefaultlienreal estate

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