The legal right of a lender of money if the borrower fails to repay the money or part of it on the due date. The lender must apply to a court to be permitted to sell the property that has been held as security for the debt. The court will order a new date for payment in an order called a foreclosure nisi. If the borrower again fails to pay, the lender may sell the property. This procedure can occur when the security is the house in which the mortgagor lives and the mortgagor fails to pay the mortgagee (bank, building society, etc.) the mortgage instalments. The bank, etc., then forecloses the mortgage, dispossessing the mortgagor.
Subjects: Financial Institutions and Services.