### Question
What is the definition of foreclosure property?


### Answer
The definition of **foreclosure property** is as follows in *26 U.S.C. § 860L*:

> property—


(i) which would be foreclosure property under section 856(e) (determined without regard to paragraph (5) thereof) if such property were real property acquired by a real estate investment trust, and


(ii) which is acquired in connection with the default or imminent default of a debt instrument held by the FASIT unless the security interest in such property was created for the principal purpose of permitting the FASIT to invest in such property

#### Citation:
  - *26 U.S.C. § 860L*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter M-Regulated Investment Companies and Real Estate Investment Trusts > PART V-FINANCIAL ASSET SECURITIZATION INVESTMENT TRUSTS**

