Foreclosure

Foreclosure is the legal process a lender initiates to recover an outstanding debt when a borrower defaults on a secured lending agreement. It typically involves repossessing and selling the property used as collateral.

In the context of bridging loans, if a borrower fails to repay at maturity and lacks a viable exit, foreclosure may occur—especially when no extension is negotiated. The loan-to-value ratio (LVR) and any court judgement (CJ) influence how the process unfolds and whether the sale covers the outstanding balance.

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