Foreclosure (Noun)
Meaning
The legal proceedings initiated by a creditor to repossess the collateral for loan that is in default.
Classification
Nouns denoting acts or actions.
Examples
- The homeowner's failure to make mortgage payments led to a foreclosure of the property by the bank.
- A foreclosure can result in the borrower losing not only the property but also their creditworthiness.
- When a borrower defaults on their loan, the lender can initiate foreclosure proceedings.
- Foreclosure laws vary from state to state, with some providing more protection for homeowners than others.
- In some cases, homeowners can negotiate with lenders to avoid foreclosure through alternative arrangements such as refinancing.