In real estate law, Foreclosure is the legal process by which a lender enforces a lien against a property due to the borrower’s default on a loan. The purpose of foreclosure is to terminate the borrower’s rights, title, and interest in the property so that it may be sold to satisfy the outstanding debt.
Foreclosure may occur through court proceedings or through nonjudicial processes, depending on state law and the type of security instrument used. Once the property is sold, the proceeds are applied to the lien, and any remaining rights of the former owner are generally extinguished, subject to applicable redemption laws.
