Methodology authored by Zach Wade, Wade Intel — operator-led lender tech methodology firm. Definitions validated against production borrower-validation runs with working bridge lenders. · Last reviewed 2026-07-10

What is Foreclosure?

The legal process by which a lender repossesses a property after the borrower defaults on the loan. Foreclosure methods vary by state — judicial (court-supervised) vs. non-judicial (power of sale). The process typically takes 3-18 months.

Why it matters to bridge lenders

Prior foreclosures in a borrower’s history indicate they’ve defaulted on loans before. While one foreclosure in an otherwise strong track record may be explainable, multiple foreclosures are a pattern. PulseClose screens for foreclosure records as part of the litigation check.

Related: Notice of Default (NOD), Bankruptcy, Lis Pendens