Okuzeka
Real Estate vocabulary · Mortgages & Financing

Foreclosure

Meaning in real estate, with examples

/fɔːrˈkloʊʒər/nounCommon term

In real estate, foreclosure means: The legal process in which a lender takes back and sells a property because the borrower has stopped making the mortgage payments.

In Turkish: ipoteğin paraya çevrilmesi, icra yoluyla satış, haciz

How it is used

American English; the British word is repossession. Homes in foreclosure are often sold at auction, and some investors look for them because they can be priced below market value. The verb is foreclose: the bank foreclosed on the house.

Example sentences

  1. After missing payments for a year, the family faced foreclosure.

  2. He buys foreclosure properties at auction and renovates them.

Common collocations

  • face foreclosure
  • foreclosure auction
  • in foreclosure
  • foreclose on a property
  • mortgageA long-term loan used to buy a property, in which the property itself serves as security for the lender until the loan is paid back.
  • lenderA bank or other financial company that lends money, especially one that provides mortgages to home buyers.
  • lienA legal claim on a property by someone who is owed money, such as a lender, a tax office or a builder, which usually has to be paid off before the property is sold.
  • equityThe part of a property's value that the owner truly owns: its current market value minus whatever is still owed on the mortgage.

More terms: Mortgages & Financing

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