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Simple English definitions for legal terms
foreclose
Read a random definition: Federal Reserve Board of Governors
A quick definition of foreclose:
Term: FORECLOSE
Definition: Foreclose means to take away someone's right to a property because they did not pay back the money they borrowed to buy it. The person who lent the money can sell the property to get their money back. If there is any money left over, it goes back to the person who borrowed the money.
A more thorough explanation:
Definition: To end a mortgagor's rights to a property and subject it to foreclosure proceedings.
For example, if a person takes out a mortgage to buy a house but fails to make their mortgage payments, the lender can foreclose on the property. This means the lender can take possession of the property and sell it to recover the money owed.
Another example is if a homeowner wants to sell their property but still owes money on their mortgage. If the sale price is not enough to pay off the mortgage, the lender may foreclose on the property to recover the remaining debt.
These examples illustrate how foreclosure is a legal process used by lenders to recover money owed on a property when the borrower fails to meet their obligations.