Final answer:
To foreclose a chattel mortgage in an installment sale of personal property due to default of two or more payments, the creditor follows certain procedures including sending a demand letter, repossessing the property, and selling it at a public auction.
Step-by-step explanation:
In an installment sale of personal property, a chattel mortgage is a type of security interest that allows a creditor to take possession of the property if the buyer defaults on their payments. To foreclose a chattel mortgage due to default of two or more payments, the creditor typically follows a set of procedures. These may include sending a demand letter to the buyer, repossessing the property, selling the property at a public auction, and applying the proceeds to the outstanding debt.