Foreclosure

n. taking away of the right to redeem his property; hindering; shutting out; closing or settling beforehand

Foreclosure is the equitable proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner's failure to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, it is typically said that "the lender has foreclosed its mortgage or lien."
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Noun
1. the legal proceedings initiated by a creditor to repossess the collateral for loan that is in default
(hypernym) proceeding, legal proceeding, proceedings
(derivation) foreclose

Process by which the holder of a mortgage seizes the property of the homeowner who has not made interest and/or principal payments on time as stipulated in the mortgage contract.

The technical meaning of the word is to wipe out a right of redemption on a property. Generally, this is what happens when someone does not pay their mortgage. Even though there has been no payments, the borrower retains a equitable right of redemption if, some day, he or she were able to find the money and try to exercise their right of redemption. - (read more on Foreclosure)