Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
To foreclose is taking possession of any mortgaged property, especially when the borrower has not paid the mortgage payments as per the terms and conditions. It also means preventing something or any action.
Foreclosure is seen throughout the home loan segment. Banks foreclose to take back or wrest control of real estate/property that was purchased with borrowed funds and this is done since the borrower defaulted on his/her payments, not adhering to the terms and conditions of the formal agreement for the mortgage in question. This also indicates the procedure of ownership transfer of a property/home back to the lender/bank after the failure of the borrower or buyer to repay the home loan or mortgage in question. Hence, it is sometimes observed in case of the home loan or mortgage sector.
