Foreclosure in Kenya: What every homeowner needs to know

Forclosure sign. (Courtesy/iStock)

I have a close friend who recently bought a house on mortgage but now risks losing the investment following irregular payments. She recently received a letter from the lender that the property will be foreclosed to recover the debt. We tried to discuss what foreclosure meant but did not come to a convincing agreement. What does it mean? Vincent, Nairobi

For starters, foreclosure is a legal action whereby a bank or mortgage firm bars a client from settling the loan and takes over the property.