Final answer:
When a seller forecloses a chattel mortgage on property, the effects include the buyer losing ownership, the seller recovering the debt, and the property being sold to cover the debt.
Step-by-step explanation:
When a seller forecloses a chattel mortgage on a property that is not the object of a sale, it means that the seller is taking legal action to repossess the property because of a default by the buyer on two or more installment payments. In this case, the seller can seize the property and sell it to recover the outstanding debt. The effects of such foreclosure may include the buyer losing ownership of the property and the seller receiving the proceeds from the sale to cover the debt.
On the other hand, when the property is also the object of sale, this type of foreclosure serves as a legal remedy for the seller to recover the outstanding debt from the buyer's default on installment payments. In this case, the seller can seize the property and sell it to cover the debt. The effects of this type of foreclosure may include the buyer losing ownership of the property, the seller receiving the proceeds from the sale to cover the debt, and any remaining amount being returned to the buyer.