Meaning & Definition of word "Foreclose"

Foreclose

/fɔːrˈkloʊz/

1. To eliminate or preclude the possibility of an action, event, or outcome; to prevent.
- Example: The new regulations may foreclose any chance of achieving consensus among the stakeholders.
2. To take legal action to terminate the rights of a borrower under a mortgage, usually due to default on payments, allowing the lender to sell the property to recover funds.
- Example: The bank decided to foreclose on the property after the homeowner failed to make their mortgage payments for six months.
3. To seize property or assets due to failure to fulfill a legal obligation, especially in relation to a mortgage or lien.
- Example: After the borrower declared bankruptcy, the bank moved to foreclose on the house.

●From the prefix 'fore-' meaning 'before' and 'close' from Old French 'clore', meaning to shut.

foreclosure process:

The legal steps a lender takes to recover the amount owed on a defaulted loan by selling or taking ownership of the property.

foreclose on a home:

To initiate legal proceedings to take possession of a home due to unpaid mortgage payments.

foreclosure auction:

A public sale of a property that has been foreclosed upon.

mortgage:

A loan taken out to buy property, typically requiring regular payments with interest.

lien:

A legal right or interest that a lender has in the borrower's property, granted until the debt obligation is satisfied.

default:

Failure to fulfill a financial obligation, such as a loan repayment.

Meaning: Getting kicked out of your house

● Example Sentence: After the bank foreclosed, they were out on the street.

Meaning: To lose everything

● Example Sentence: He went from owning a home to being foreclosed; it’s a tough break.