Definition:
Foreclosure is a process by which a bank or other entity which holds a mortgage on a building or a lien onother business property attempts to take back the property because the borrower has failed to continue to make payments. In these cases, the loan has been secured by the property, and the mortgager or lien holder attempts to recover its money by taking back and reselling the property. It is considered that the buyer's failure to make payments has caused it to default on the loan, giving the lien holder the right to foreclose.
The process for foreclosure of busines property is similar to that for personal property.
Examples:
Because the business could not pay its bills, the bank foreclosed on its building and other assets.
