A legal by which a lender or a seller forces a sale of a mortgaged property.
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A. B. C. D.B
The correct answer is A. Foreclosure.
Foreclosure is a legal process by which a lender or a seller (in a land contract) seeks to force the sale of a mortgaged property to recover the amount owed on the loan or contract. In other words, it is a legal mechanism used by a lender or seller to repossess a property from the borrower or buyer who has defaulted on their loan or contract payments.
Foreclosure can be initiated by the lender or seller when the borrower or buyer is in default on their loan or contract payments. The foreclosure process typically begins with the lender or seller sending a notice of default to the borrower or buyer, notifying them that they are in default and that foreclosure proceedings will begin unless the default is cured. If the default is not cured, the lender or seller may initiate a foreclosure lawsuit or sell the property at a public auction to recover the amount owed on the loan or contract.
Foreclosure can have serious consequences for the borrower or buyer, including the loss of their home or property and damage to their credit score. It is therefore important for borrowers and buyers to be aware of their obligations under their loan or contract and to seek assistance if they are having difficulty making payments.