Foreclosure: meaning, definitions and examples
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foreclosure
[ fɔːrˈkloʊʒər ]
legal process
Foreclosure is a legal process through which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments. In a foreclosure, the lender may take possession of the property used as collateral for the loan in order to sell it and recover the owed money. This process usually occurs after several missed mortgage payments and can significantly impact the borrower's credit rating. Foreclosure can lead to a forced sale of the property at an auction, where the property is sold to the highest bidder.
Synonyms
attachment, repossession, seizure
Examples of usage
- The bank initiated foreclosure on the defaulted mortgage.
- Homeowners can face foreclosure if they cannot keep up with their payments.
- The foreclosure process can vary by state and lender.
- After months of missed payments, the family faced foreclosure.
- Many people lose their homes due to foreclosure during economic downturns.
Translations
Translations of the word "foreclosure" in other languages:
🇵🇹 execução hipotecária
- penhor
- leilão judicial
🇮🇳 बंदोबस्ती
🇩🇪 Zwangsvollstreckung
🇮🇩 sita
- lelang
- penyitaan
🇺🇦 виконавче провадження
- звернення стягнення
- аукціон
🇵🇱 egzekucja
- licytacja
- przymusowe przejęcie
🇯🇵 差し押え
- 競売
- 取り立て
🇫🇷 saisie immobilière
- vente aux enchères
- exécution hypothécaire
🇪🇸 ejecución hipotecaria
- embargo
- subasta
🇹🇷 icra
- ipotek icrası
- açık artırma
🇰🇷 압류
- 경매
- 강제집행
🇸🇦 الحجز
- المزاد العلني
- التنفيذ الجبري
🇨🇿 vydražení
- exekuce
- dražba
🇸🇰 exekúcia
- dražba
- nútené prevzatie
🇨🇳 止赎
- 拍卖
- 执行
🇸🇮 izvršba
- dražba
- prostorno izvršitev
🇮🇸 forskot
- nauðung
- uppboð
🇰🇿 жарнама
- тәркілеу
- аукцион
🇬🇪 გადაწყვეტილება
- აუქციონი
- იძულებითი აღსრულება
🇦🇿 icra
- hərrac
- ipoteka icrası
🇲🇽 ejecución hipotecaria
- remate
- embargo
Etymology
The term 'foreclosure' has its origins in the Middle English word 'forclosen', which is derived from the combination of 'for-' meaning 'away from' or 'completely', and 'closen', meaning 'to shut'. The use of the word evolved in the legal context during the 16th century, initially referring to the act of legal closure, particularly in reference to the closing of a property transaction or the termination of a mortgage. Over time, it became specifically associated with the lender’s right to reclaim a property when the borrower fails to uphold the terms of the mortgage agreement. By the late 19th to early 20th century, 'foreclosure' became firmly established in American legal and financial terminology as property laws evolved alongside the expansion of the housing market. The process of foreclosure has been affected by various economic conditions, notably during financial crises when defaults on payments increase significantly, leading to a heightened focus on the implications of foreclosure for both lenders and borrowers.