Question

When a borrower has defaulted on a loan, and the lender chooses judicial foreclosure, the mortgagor is given a specified period of time to redeem the property. During this redemption period, the right of possession of the property is held by the:

Answer 1

In a judicial foreclosure, the right of possession during the redemption period typically stays with the defaulting borrower, allowing them a chance to repay the loan and keep the property.

Step-by-step explanation:

During the redemption period following a judicial foreclosure, the right of possession usually remains with the defaulting borrower (mortgagor) unless a court order states otherwise. This period allows the borrower a final opportunity to pay off the debt and retain ownership of the property.

However, if the borrower fails to redeem the property within the specified timeframe, the lender (mortgagee) may then take possession and sell the property to recover the outstanding loan balance.