verb
foreclose
for-KLOHZ/fɔːrˈkləʊz/
To take legal possession of property because mortgage payments have not been made.
The bank forecloses on homes when borrowers stop making mortgage payments.
Etymology
The original idea is 'shut out' or 'exclude.' In mortgage law, this becomes cutting off an owner's right to recover mortgaged property after failing to repay.
In context
… we'll get our money back when we foreclose on property …
More examples
- The lender foreclosed on the house after six missed payments.
- They risk losing their condo if the lender forecloses.
- The credit union is foreclosing on their rental property.
Forms
foreclose · forecloses · foreclosed · foreclosing
foreclosure noun — Legal process of taking property for mortgage nonpayment.
Similar words
- repossess
- Also covers taking back vehicles or other financed goods.
- seize
- Means taking property by force or authority, not necessarily for nonpayment.