### Question
How does Regulated Investment Companies and Real Estate Investment Trusts define foreclosure property?


### Answer
Under *26 U.S.C. § 860G*, **foreclosure property** is defined as:

> property—


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


(B) which is acquired in connection with the default or imminent default of a qualified mortgage held by the REMIC

#### Citation:
  - *26 U.S.C. § 860G*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter M-Regulated Investment Companies and Real Estate Investment Trusts > PART IV-REAL ESTATE MORTGAGE INVESTMENT CONDUITS**

