- The process by which a lender initiates legal actions against a borrower who has failed to repay a loan as agreed, primarily with intent to take possession and sell the property as a means to recover the loan amount
- The legal process through which a party holding a mortgage or other type of secured interest takes action to take ownership of the property due to the failure of the borrower to make the necessary payments
- If the loan payments are not fulfilled, the bank may have to foreclose on the property.
- The lender decided to foreclose after numerous failed attempts to collect the debt.
- Upon continued failure of mortgage payments, the secured party has the right to foreclose the property.