What is Foreclosure?

Foreclosure is the legal proceeding in which a mortgagee, usually a lender, obtains a court ordered termination of a mortgagor’s equitable right of redemption.
Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults and the lender try to repossess the property, courts of equity can grant the owner the right of redemption if the borrower repays the debt.
When this equitable right exists, the lender cannot be sure that it can successfully repossess the property, thus the lender seeks to eliminate the equitable right of redemption.