Ukraine’s mortgage market is significantly underdeveloped; in part due to the widespread dysfunction of the mortgage foreclosure process. Legal; judicial; and social constraints undermine lenders’ ability to recover collateral; elevating risks; inflating mortgage costs; and suppressing credit supply.Key obstacles include:*Legal ambiguities and conflicting legislation; particularly The Law on Protection of Childhood provisions that effectively shield mortgaged homes from foreclosure when children registered at the property cannot be evicted (as well as other social protection legislations imposing similar eviction moratoriums).*Judicial inefficiencies; inconsistent rulings; and procedural delays.*Social resistance to foreclosure due to cultural and political factors; and a lack of consumer understanding of mortgage obligations.*Weak administrative enforcement mechanisms and fragmented institutional capacity.A robust; evidence-based analysis is needed to understand why foreclosure does not work; and—importantly—how to design solutions that balance borrower protections with lender rights. The study should consider practices from comparable Eastern European countries; explore EU law implications (including the Mortgage Credit Directive); and offer recommendations that can be both effective and socially acceptable.