Foreclosure

To shut out; to bar. Used of the process of destroying an equity of redemption.

1 Washb. Real Prop. 589; Daniell, Ch. Pr. 1204; Coote, Mortg. 511; 9 Cow. (N. Y.) 382.

A proceeding in chancery by which the mortgagor's right of redemption of the mortgaged premises is barred or closed forever. In the more comprehensive sense which modern usage requires, any proceeding by which mortgaged property is applied to the payment of the mortgage debt, and the equity of the mortgagor therein barred. As so defined, foreclosure is divided into: (1) Strict foreclosure, being foreclosure by a proceeding in chancery, by which the equity of redemption is barred within a certain time, and the title of the mortgagee becomes absolute. (2) By entry, by the act of the mortgagee taking possession either by his own peaceable act, or under writ of entry. (3) By sale, being by an action for the judicial sale of the mortgaged property, and the application of the proceeds to the payment of the mortgage debt. Sometimes called "foreclosure by action." (4) By advertisement, being a sale under a power of sale in the mortgage, notice thereof being given by advertisement. Sometimes called "foreclosure under power of sale." The two first-named varieties are practically unused in the United States, though they exist in a few states.