foreclosure

noun
fore·​clo·​sure | \ (ˌ)fȯr-ˈklō-zhər How to pronounce foreclosure (audio) \

Definition of foreclosure

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

Examples of foreclosure in a Sentence

Recent Examples on the Web

When the housing bubble burst in 2006 and homes tumbled into foreclosure, the fallout spread like a virus. Jim Puzzanghera, The Seattle Times, "A decade after the financial crisis, many Americans are still struggling to recover," 10 Sep. 2018 The homebuilder’s headquarters went into foreclosure last year, and Toll is looking around for a possible new headquarters site. Joseph N. Distefano, Philly.com, "Toll Bros. is a highly profitable luxury homebuilder. So how did its Horsham HQ end up in foreclosure?," 7 June 2018 The Oregon commune dissolved in the months after Rajneesh left the country and remained abandoned for years afterward, falling into foreclosure. Adam Carlson, PEOPLE.com, "Everything to Know About the ‘Cult’ That Took Over a Tiny Oregon Town, Featured in Netflix’s Wild Wild Country," 6 Apr. 2018 According to Joanna, she and Chip had bought their then-home, a vacant foreclosure, and renovated the property in a whopping three months before ultimately moving in. Blair Donovan, Country Living, "Joanna Gaines Finally Met the Woman Who's Responsible for 'Fixer Upper'," 7 Apr. 2019 One57 has even seen a foreclosure, a rarity in New York’s high-end real estate. Candace Taylor, WSJ, "The Man Behind Billionaires’ Row Battles to Sell the World’s Tallest Condo," 17 Jan. 2019 Wochit The economy has shifted into high gear, with corporate profits surging, bankruptcies and foreclosures tumbling and the national unemployment rate easing to 3.8 percent, an 18-year low. Russ Wiles, azcentral, "How to keep on top of your personal finances in a growing economy," 10 June 2018 In some distant, better future, the foreclosure of Hell will be an important step in the maturation of human communities that can mete out justice on their own, without supernatural aid. Scott G. Bruce, WSJ, "Do We Still Need to Believe in Hell?," 13 Sep. 2018 The other foreclosure is from Bank of the Ozarks over $4.3 million on another retail location. Paul Brinkmann, OrlandoSentinel.com, "iSquare developer settles foreclosure dispute, for now," 7 May 2018

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.

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First Known Use of foreclosure

1713, in the meaning defined above

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Statistics for foreclosure

Last Updated

10 Jun 2019

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Time Traveler for foreclosure

The first known use of foreclosure was in 1713

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More Definitions for foreclosure

foreclosure

noun

Financial Definition of 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).

1. The borrower signs a contract agreeing to repay the lender over a period of time, usually in predetermined installments.
2. The borrower misses one or more payments.
3. The lender sends the borrower one or more notices of delinquency.
4. The borrower and the lender try to adjust the repayment schedule so that the borrower is more likely to make at least some of the payments until he or she gets back on his feet. (This process is called special forbearance or mortgage modification.)
5. The borrower misses additional payments.
6. The lender sends the borrower a notice of default and initiates foreclosure proceedings.

A) In a judicial foreclosure, a court confirms the amount owed to the lender and gives the borrower a set amount of time to pay up ("cure the default").
B) In a nonjudicial foreclosure, the loan document authorizes the lender to sell the property to recover the loan balance.
7. The lender puts the property up for sale and publishes a notice of the sale in the local paper. The notice includes a description of the property, the name of the borrower, and other information. The borrower might file Chapter 13 bankruptcy to stop the foreclosure temporarily.
8. A public auction occurs during business hours, and the highest bidder is usually entitled to buy the property. At that point, the borrower cannot get the property back unless he or she buys it back.

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]

Source: Investing Answers

foreclosure

noun
fore·​clos·​ure | \ fōr-ˈklō-zhər How to pronounce foreclosure (audio) \

Legal Definition of foreclosure

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 sense 1
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 sense 2

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More from Merriam-Webster on foreclosure

Rhyming Dictionary: Words that rhyme with foreclosure

Nglish: Translation of foreclosure for Spanish Speakers

Britannica English: Translation of foreclosure for Arabic Speakers

Britannica.com: Encyclopedia article about foreclosure

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