{"ok":true,"canonical_url":"https://dealroom.so/glossary/foreclosure-proceeding","api_url":"https://dealroom.so/api/public/glossary/foreclosure-proceeding","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-proceeding","term":"Foreclosure Proceeding","group":"Doing the deal","definition":"The legal process a lender initiates to repossess and sell collateral, typically real estate, after a borrower defaults on a loan. It's a formal step to recover outstanding debt.","what_it_means":"If you default on an SBA loan collateralized by real estate, the lender will start a foreclosure proceeding. This is a court-supervised process that can be lengthy and costly for all parties involved. As a buyer, understand the implications of pledging personal or business real estate as collateral, as it can be seized in default through this process.","url":"https://dealroom.so/glossary/foreclosure-proceeding","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"foreclosure","term":"Foreclosure","url":"https://dealroom.so/glossary/foreclosure"},{"slug":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"},{"slug":"mortgage","term":"Mortgage","url":"https://dealroom.so/glossary/mortgage"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"}],"related_questions":[{"question":"Can an SBA 7(a) loan be used to acquire a business that is currently in a bankruptcy proceeding?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-acquire-a-business-that-is-currently-in-a-bankruptcy-procee"},{"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 an SBA 7(a) loan finance the purchase of a business currently in bankruptcy proceedings?","url":"https://dealroom.so/for-lenders/questions/can-an-sba-7-a-loan-finance-the-purchase-of-a-business-currently-in-bankruptcy-proceedings"}]},"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 Proceeding","url":"https://dealroom.so/glossary/foreclosure-proceeding","source_type":"DealRoom Data"}}