Definition of Foreclosure

To shut out, to bar, to destroy an equity of redemption. Anderson v. Barr, 178 Okl. 508, 62 P.2d 1242, 1246. A termination of all rights of the mortgagor or his grantee in the property covered by the mortgage. The process by which a mortgagor of real or personal property, or other owner of property subject to a lien, is deprived of his interest therein. A proceeding in equity whereby a mortgagee either takes title to or forces the sale of the mortgagor’s property in satisfaction of a debt. Procedure by which mortgaged property is sold on default of mortgagor in satisfaction of mortgage debt. If proceeds from sale fail to pay debt in full, mortgagee creditor may obtain a Deficiency judgment (q.v.).

A default under a security interest in personal property can be foreclosed by a judicial sale of collateral. U.C.C. § 9-501.

In common usage, refers to enforcement of lien, trust deed, or mortgage in any method provided by law.

See also Equity of redemption.

Statutory foreclosure. The term is sometimes applied to foreclosure by execution of a power of sale contained in the mortgage, without recourse to the courts, as it must conform to the provisions of the statute regulating such sales.

Strict foreclosure. A decree of strict foreclosure of a mortgage finds the amount due under the mortgage, orders its payment within a certain limited time, and provides that, in default of such payment, the debtor’s right and equity of redemption shall be forever barred and foreclosed; its effect is to vest the title of the property absolutely in the mortgagee, on default in payment, without any sale of the property.

That's the definition of Foreclosure in Black's Law Dictionary 6th Edition. Courtesy of