{"ok":true,"canonical_url":"https://dealroom.so/glossary/foreclosure","api_url":"https://dealroom.so/api/public/glossary/foreclosure","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"foreclosure","term":"Foreclosure","group":"Doing the deal","definition":"The legal process by which a lender repossesses and sells property (like real estate or business assets) when a borrower defaults on their loan.","what_it_means":"If you default on your SBA loan, the lender can initiate foreclosure proceedings on any real estate or other assets pledged as collateral. This is the ultimate recourse for the lender to recover losses, so understand what assets you're putting on the line. Review your personal guarantee carefully.","url":"https://dealroom.so/glossary/foreclosure","official_sources":[],"related":[{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"recourse","term":"Recourse","url":"https://dealroom.so/glossary/recourse"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"}],"related_questions":[{"question":"Does having a past personal foreclosure affect my eligibility for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/does-having-a-past-personal-foreclosure-affect-my-eligibility-for-an-sba-7-a-loan"},{"question":"How does a recent personal foreclosure or short sale on my home affect SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/how-does-a-recent-personal-foreclosure-or-short-sale-on-my-home-affect-sba-7-a-loan-approv"},{"question":"Does a foreclosure on an investment property (not my primary residence) affect my SBA 7(a) loan approval chances?","url":"https://dealroom.so/sba-7a/questions/does-a-foreclosure-on-an-investment-property-not-my-primary-residence-affect-my-sba-7-a-lo"},{"question":"Can prior bankruptcies or foreclosures impact my SBA 7(a) loan eligibility?","url":"https://dealroom.so/sba-7a/questions/can-prior-bankruptcies-or-foreclosures-impact-my-sba-7-a-loan-eligibility"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Foreclosure","url":"https://dealroom.so/glossary/foreclosure","source_type":"DealRoom Data"}}