Home » Eng Accounting » F » Foreclosure

Foreclosure

Taking over by a lender of a mortgaged property, because of failure by the borrower to comply with the conditions of the ‘mortgage. This failure usually consists of failure to make interest and amortization payments by the due arrears have arisen, and normally requires authorization by a court. In the UK the term is repossession.

Reference: Oxford Press Dictonary of Economics, 5th edt.