DefineLaw

What is foreclosure?

Foreclosure is the process a lender uses to take back property after loan default.

Why it matters

It is how a lender recovers its secured debt when payments stop.

Common confusion

Foreclosure ends ownership; a short sale is a voluntary sale to avoid it.

DefineLaw editors — plain-English definitions for general reference; not a substitute for advice from a licensed attorney.

Frequently Asked Questions

How can I avoid foreclosure?

Catch up payments, modify the loan, or pursue a short sale or deed-in-lieu.

How long does it take?

Months to over a year, depending on the state and process.

Can I buy the home back?

Sometimes during a redemption period, if your state allows it.

Related real estate terms