Consumer Comeback Blog

Credit Score Glossary: Foreclosure

Foreclosure: The formal legal process by which a lender attempts to recover the balance of a loan by forcing the sale of an asset used as collateral for the loan.

Foreclosures are most commonly seen with mortgages, usually happening when a borrower falls significantly behind on mortgage payments. In these cases, forcing the sale of the asset, or the house, is customary.

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