Definition: When you finance the purchase of your home, you grant
the lender a security interest in your property, known as a
mortgage. If you are delinquent in making payments on the mortgage, the lender has the right to foreclose on your property. Foreclosure is the process by which a lender takes title to or forces the sale of an owner’s property to satisfy a debt. If the proceeds of the sale are not enough to satisfy the debt, the lender may obtain a deficiency judgment.
Also Known As: Equity of Redemption, Strict Foreclosure, Statutory Foreclosure
