Question

A legal process that terminates a defaulting borrower's interest in a property, enabling the lender to seize it as pledged collateral.

a) Foreclosure
b) Short Sale
c) Deed in Lieu
d) Eviction

Answer 1

Foreclosure is the legal process that terminates a defaulting borrower's interest in a property, enabling the lender to seize it as pledged collateral.

Step-by-step explanation:

Foreclosure is a legal process through which a lender attempts to recover the balance of a loan from a borrower who has stopped making mortgage payments by forcing the sale of the asset that was used as collateral for the loan. In most cases, this asset is the borrower's home.

The legal process that terminates a defaulting borrower's interest in a property, enabling the lender to seize it as pledged collateral is called foreclosure.