Asked by Marina Carosella on May 28, 2024
Verified
Foreclosure is an action through which the mortgage holder takes the property from the mortgagor, ends the mortgagor's rights in the property, and sells the property to pay the mortgage debt.
Foreclosure
The legal process by which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the asset used as the collateral for the loan.
Mortgage Holder
An entity or individual who holds the lien on a property; typically, this is the lender in a mortgage agreement.
Mortgage Debt
The amount of money a borrower owes to a lender, secured by real property through a mortgage agreement.
- Understand the principles and legal consequences of foreclosure on real estate assets.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
True
Explanation :
Foreclosure is a legal process where the lender (mortgage holder) seeks to recover the balance of a loan from a borrower (mortgagor) who has stopped making payments by forcing the sale of the asset used as the collateral for the loan, thereby ending the mortgagor's rights in the property.
Learning Objectives
- Understand the principles and legal consequences of foreclosure on real estate assets.