Foreclosure Legal Meaning and Definition

Here is a simplified definition of the legal term Foreclosure.

Foreclosure (noun)

Foreclosure is a legal process where a creditor takes control and sells a property or asset, like a house or car, to recover money owed by a debtor. This usually happens when the debtor fails to meet their repayment obligations. For example, if someone cannot keep up with their mortgage payments, the bank can start the foreclosure process to sell their home and use the sale proceeds to pay off the remaining debt.