Final answer:
When a bank forecloses on Sam's condo, they can take possession of the property and sell it to recover the outstanding loan balance. They may also seize any personal property inside the condo, except for essential items.
Step-by-step explanation:
When a bank forecloses on Sam's condo, they have the right to take possession of the property due to the borrower's default on the mortgage. In most cases, the bank will sell the condo in order to recover the outstanding loan balance.
During the foreclosure process, the bank can take ownership of the condo and sell it to pay off the debt. They can also seize any personal property inside the condo if it is not removed before the foreclosure sale. However, the bank cannot take any property that is considered essential for daily living, such as clothes, furniture, or basic household items.
It's important to note that the specific rules and regulations regarding foreclosure procedures may vary depending on the jurisdiction and the terms of the mortgage agreement.