Foreclosure

As it relates to business, a foreclosure typically refers to a forced sale of an underlying security (also called collateral by the party who has issued a loan (typically, a bank or financial institution, but it can be any trustee of the loan or other secured obligation or lien) when the borrower or other party obligated to pay off the loan or other obligation is in default in the payment of the obligation (i.e., the payment of interest or principal of a loan).