Foreclosure is the process where the lender of the money forces the borrower (using any means) to pay back the borrowed amount. The term is used in cases where the borrower has already stopped making repayments and the lender is forcing the borrower to pay back via means of selling their property, assets, or collateral (if there is any). This is a legal process and can be pursued by a lender anytime after the borrower has stopped paying back. However, the process has to be initiated after getting permission from the court i.e. submitting papers to the court showing that the borrower has not paid back for the specified time and that the lender is exercising the right to sell the collateral and recover their money.