Final answer:
The Correct option is B.Closing is the process in real estate transactions where the sale and financing details are concluded, documents are signed and transferred, and funds are distributed.
Escrow is involved in managing payments for insurance and taxes, while foreclosure is a process initiated when a borrower fails to meet mortgage payments.
Step-by-step explanation:
The process by which all parties to a real estate transaction conclude the details of the sale and financing, including the signing and transfer of documents and distribution of funds, is known as Closing.
During the closing, several tasks are completed such as the finalizing of the loan, the signing of the deed, the transferring of ownership from seller to buyer, and the distribution of payments.
Escrow plays a significant role in this process by holding funds and distributing them accordingly for expenses like home insurance and property taxes, often included in the buyer's monthly payment.
On the other hand, foreclosure is the legal process by which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments.
It is not related to the process of closing but is a consequence of a borrower's inability to meet mortgage obligations.