Definition
The legal process by which a mortgagee (lender) acquires clear title to mortgaged property upon the mortgagor's (borrower's) default, extinguishing the borrower's right to redeem. Under the Transfer of Property Act, foreclosure is a mortgagee's remedy in addition to sale. SARFAESI Section 13 provides a similar statutory remedy for secured creditors without court process.
Related Terms
Mortgage
A transfer of interest in immovable property as security for the repayment of money. The Transfer of…
SARFAESI
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, …
Security Interest
A right, title, or interest of any kind upon property created in favour of a secured creditor as a s…
Need Expert Advice on Foreclosure?
For specific advice on how Foreclosure applies to your debt recovery matter, consult Advocate Subodh Bajpai — LLM, MBA (XLRI Jamshedpur). 25+ years of exclusive banking and debt recovery practice across DRT, SARFAESI, IBC, and NI Act.
Defined by Advocate Subodh Bajpai, Senior Partner, Unified Chambers and Associates