### Question
How is the term foreclosure property defined?


### Answer
The term **foreclosure property** is defined in *26 U.S.C. § 514* as the following:

> any real property acquired by the financial institution as the result of having bid on such property at foreclosure, or by operation of an agreement or process of law, after there was a default (or a default was imminent) on indebtedness which such property secured

#### Citation:
  - *26 U.S.C. § 514*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter F-Exempt Organizations > PART III-TAXATION OF BUSINESS INCOME OF CERTAIN EXEMPT ORGANIZATIONS**

