{"ok":true,"canonical_url":"https://dealroom.so/glossary/personal-foreclosure","api_url":"https://dealroom.so/api/public/glossary/personal-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":"personal-foreclosure","term":"Personal foreclosure","group":"People and paperwork","definition":"The legal process where a lender seizes and sells an individual's property, typically a home, due to unpaid debt. A past personal foreclosure is a severe derogatory mark that can significantly impact your creditworthiness for an SBA loan.","what_it_means":"A personal foreclosure on your credit report indicates a past inability to manage debt, which lenders view seriously. They will thoroughly investigate the circumstances, look for any mitigating factors, and may require a larger equity injection or more substantial collateral to offset the perceived risk when evaluating your loan application.","url":"https://dealroom.so/glossary/personal-foreclosure","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":"credit-report","term":"Credit report","url":"https://dealroom.so/glossary/credit-report"},{"slug":"derogatory-mark","term":"Derogatory mark","url":"https://dealroom.so/glossary/derogatory-mark"},{"slug":"mitigating-factors","term":"Mitigating factors","url":"https://dealroom.so/glossary/mitigating-factors"},{"slug":"bankruptcy","term":"Bankruptcy","url":"https://dealroom.so/glossary/bankruptcy"}],"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"},{"question":"Does a personal guaranty extend to my personal assets acquired after the loan closing date?","url":"https://dealroom.so/sba-7a/questions/does-a-personal-guaranty-extend-to-my-personal-assets-acquired-after-the-loan-closing-date"},{"question":"What happens if a required personal guarantor lacks sufficient personal assets for an effective guaranty?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-a-required-personal-guarantor-lacks-sufficient-personal-assets-for-an-effe"}]},"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 — Personal foreclosure","url":"https://dealroom.so/glossary/personal-foreclosure","source_type":"DealRoom Data"}}