A loose ball foul in the NBA (European rules may differ) is committed when NO player from either team has possession of the ball. It is NOT a foul committed on a player who does not have possession of the ball so long as some other player has possession.
A loose ball foul is committed ONLY when NO player from either team has possession, which is evident from the name, "Loose ball."
The concept is important because an offensive foul has different repercussions than a defensive foul, but a "loose ball foul" is neither a defensive or an offensive foul. If any other player other than the one fouled has the ball then the foul is either defensive or offensive.
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When a defending player attempts a steal or a block and bats it away from the offending player, causing the ball to be out of possession, or 'loose'.
Its pretty much when no player is holding the ball, but it is still in play.
when no player or team has posession of the ball. loose balls can be from deflected passes that both offensive or defensive players can scrimage for (going after a 'loose ball')