Question

A lender can begin this remedy proceeding if any covenant under the mortgage is violated. In this remedy, the mortgage lender declares the entire amount of the mortgage due and goes to court to proceedings. The mortgage lender's goal is to gain ownership of the property, instead of being paid the balance of the debt. This remedy is known as:

a) Foreclosure.
b) Power of Sale.
c) Quantum Meruit.
d) An injunction

Answer 1

Foreclosure is the legal process where a mortgage lender can gain ownership of the property if a covenant under the mortgage is violated, aiming to recover the debt through property ownership.

Step-by-step explanation:

The remedy proceeding that a lender can begin if any covenant under the mortgage is violated, where the lender's goal is to gain ownership of the property, is known as foreclosure. This legal process allows the lender to declare the entire amount of the mortgage due and proceed to court to seek control of the property as satisfaction for the debt. In contrast, the power of sale is a method where the mortgage lender can sell the mortgaged property without court supervision after a default. Quantum Meruit and an injunction are unrelated to this process. During foreclosure, the lender aims not just to recoup the balance of the debt but to take ownership of the property as repayment for the loan. This process underscores the importance of collateral in the event that borrowers are unable to repay their debts, which is a common practice in financial capital markets.