foreclosure

play
noun fore·clo·sure \(ˌ)fȯr-ˈklō-zhər\
Updated on: 26 Jul 2017

Definition of foreclosure

  1. :  an act or instance of foreclosing; specifically :  a legal proceeding that bars or extinguishes a mortgagor's right of redeeming a mortgaged estate

Recent Examples of foreclosure from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'foreclosure.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of foreclosure

1713


Financial Definition of FORECLOSURE

foreclosure

What It Is

Foreclosure occurs when a lender seizes and sells a borrower's collateral after the borrower has failed to repay the lender. The term is most often associated with real estate.

How It Works

In general, there are eight events involved in a foreclosure (in this example, we assume the borrower has obtained a mortgage for a house from the lender).

Why It Matters

The foreclosure process can take several months, if not years, and it does long-term damage to a person's credit report. It is important to note that foreclosure laws vary by state, and they affect the order or duration of these steps. It is also important to note that the federal Fair Debt Collection Practices Act affects foreclosure proceedings by stipulating the methods lenders can use to go after bad debts.

[Click here to read Seven Ways to Stop a Foreclosure on Your Home]


Law Dictionary

foreclosure

play
noun fore·clos·ure \fōr-ˈklō-zhər\

Legal Definition of foreclosure

  1. 1 :  a legal proceeding that bars or extinguishes a mortgagor's equity of redemption in mortgaged real property — see also deficiency judgment at judgment, redeem, right of redemption, statutory foreclosure, strict foreclosure 1

  2. 2 :  the extinguishment (as under the provisions of Article 9 of the Uniform Commercial Code) of the rights of a debtor in personal property subject to a security interest by judicial proceedings and especially by judicial sale — see also strict foreclosure 2



Seen and Heard

What made you want to look up foreclosure? Please tell us where you read or heard it (including the quote, if possible).

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!

WORD OF THE DAY

conspicuously offensive

Get Word of the Day daily email!

Test Your Vocabulary

Time Traveler Quiz: Which Word Came First?

  • time-traveler-quiz-which-word-came-first
  • Which came first?
True or False

Test your knowledge - and maybe learn something along the way.

TAKE THE QUIZ
Word Winder's CrossWinder

Test Your Knowledge - and learn some interesting things along the way.

TAKE THE QUIZ

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!