CEFR C1

foreclosure investment

noun phrase

Meaning

The act of purchasing real estate that has been repossessed by a lender due to the borrower's failure to make mortgage payments, with the intention of reselling it for profit or renting it out.

Examples

  • Many experienced real estate agents advise caution when considering a foreclosure investment due to potential hidden costs.
  • She decided to pursue a foreclosure investment strategy, focusing on undervalued properties in developing neighborhoods.

Synonyms: distressed property acquisition, REO investment, bank-owned property purchase