# Foreclosure

> Foreclosure governs what happens when the original payment map no longer holds

| Field | Value |
|---|---|
| Stable ID | `node:kiduna:real-estate-mortgage:default-foreclosure:foreclosure` |
| Family | Default, Loss Mitigation & Foreclosure |
| Domain | Governance |
| Era | Institutional Age → Agentic Age |
| Kind | pathology-or-event |
| Archetype | The Reversion |
| Claim layers | empirical, cultural_historical, synthesis, interpretive, symbolic_divinatory |

## What it is

A legal process through which a secured creditor enforces its claim against real property after uncured default.

## What it actually does

Terminates or rearranges ownership and junior claims so collateral can be sold or transferred to satisfy debt.

## Why it exists

It exists because place is unique and immovable while law, capital, information, and human lives must still coordinate around it across time.

## System mechanics

- **Who uses it:** owner, occupant, buyer, seller, lender, investor, steward, regulator
- **Incentives:** access, certainty, control, value, continuity
- **Inputs:** place, people, records, rules, resources, time
- **Outputs:** rights, constraints, uses, relationships, consequences
- **Dependencies:** Land, Authority, Information, Capital, Time

## Archetypal reading

- **Essence:** Foreclosure governs what happens when the original payment map no longer holds
- **Gift:** Clarity about foreclosure makes a hidden allocation of place, time, authority, value, or risk available for deliberate choice.
- **Wound / Shadow:** When foreclosure is treated as neutral or inevitable, its costs can be shifted to people who hold less information, authority, liquidity, or mobility.
- **Failure mode:** The failure mode appears when foreclosure is stale, opaque, mispriced, misrecorded, overextended, or applied outside the conditions that made it useful.

## Lenses

- **Personal:** Notice where foreclosure appears as a structure in your own commitments: what is held, promised, priced, protected, excluded, or deferred?
- **Business:** Foreclosure reveals a handoff among information, authority, incentives, operating work, and capital. Make the owner of each handoff explicit.
- **Financial:** Foreclosure changes the timing, priority, comparability, liquidity, or distribution of cash flow and risk.
- **Property:** Foreclosure changes how a physical place can be used, valued, financed, transferred, occupied, maintained, or reclaimed.
- **Community:** Foreclosure can create benefits inside one parcel while exporting costs or opportunity to neighbors, institutions, or future residents.

## Divination

The Reversion enters the reading through Foreclosure. The issue is not only what is visible; it is which map of ownership, time, risk, authority, or belonging currently governs the situation.

**Question:** Which earlier warning became visible only after Foreclosure arrived?

**Guidance:** Trace the failure backward through incentives, information, leverage, timing, and feedback rather than locating blame at the final visible event.

## Game function

Enters as a systemic event that exposes hidden leverage, deferred cost, or misaligned incentives. Initiative 3.

## Relationships

- **Reconveyance depends on Foreclosure.** Reconveyance depends on Foreclosure through a change in rights, information, cash flow, priority, timing, or physical use.
- **Deed in Lieu documents Foreclosure.** Deed in Lieu documents Foreclosure through a change in rights, information, cash flow, priority, timing, or physical use.
- **Foreclosure transfers into Judicial Foreclosure.** Foreclosure transfers into Judicial Foreclosure through a change in rights, information, cash flow, priority, timing, or physical use.
- **Foreclosure constrains Swap Transaction.** Foreclosure constrains Swap Transaction through a change in rights, information, cash flow, priority, timing, or physical use.
- **Liquidity Crisis accelerates Foreclosure.** Liquidity Crisis accelerates Foreclosure through a change in rights, information, cash flow, priority, timing, or physical use.
- **Foreclosure symbolically reverses Possession.** Foreclosure symbolically reverses Possession through a change in rights, information, cash flow, priority, timing, or physical use.

## Oppositions

- Use Value versus Exchange Value
- Speed versus Diligence

## Historical lineage and regulatory context

Read Foreclosure through the lineage of Default, Loss Mitigation & Foreclosure: earlier customary or local arrangements became recorded, standardized, financed, regulated, digitized, or contested over time.

Rules vary by jurisdiction and transaction. Use the cited primary sources as starting points and verify current local law, program guides, contracts, and professional standards before operational use.

## Visual direction

Text-free rounded-square enamel artifact for Foreclosure: a beautiful structure whose hidden fracture propagates through claims, cash flows, and neighboring parcels; vitreous midnight enamel, blackened steel, warm brass, copper accents, mortgage-paper cream, deep green, slate, and sky blue.

## Engine output / Sentinel handoff

The generative interpretation above is preserved as Engine Output. Sentinel factors: jurisdiction-specific rules, factual uncertainty. These factors request contextual review; they do not delete or silently rewrite the candidate.

## Research / provenance

- [12 CFR Part 1024 — Regulation X](https://www.consumerfinance.gov/rules-policy/regulations/1024/) — Consumer Financial Protection Bureau; RESPA, settlement, escrow, servicing, loss mitigation.
- [FHA Single Family Housing Policy Handbook 4000.1](https://www.hud.gov/hud-partners/single-family-handbook-4000-1) — U.S. Department of Housing and Urban Development; FHA approval, origination, underwriting, appraisal, servicing, quality control.
- [VA Pamphlet 26-7 — Lender's Handbook](https://www.benefits.va.gov/WARMS/docs/admin26/m26-07/Lender_Handbook_VA_Pamphlet_Complete.pdf) — U.S. Department of Veterans Affairs; VA-guaranteed mortgage lending.
