If the person or organization that lent someone money forecloses, they take possession of a property that was bought with the borrowed money, for example because regular repayments have not been made. The bank foreclosed on the mortgage for his previous home. if a bank forecloses, it takes away someone's property because they have failed to pay back the money that they borrowed from the bank to buy it foreclose on (forclos, past participle of forclore, from fors + clore )