A foreclosure happens when:
A)the rates of interest prevalent in the housing market are extremely volatile, forcing the lender to demand additional collateral from the borrower.
B)the lenders attempt to recover loan balances from the insolvent borrowers by forcing the sale of the home pledged as collateral.
C)the borrowers repay their housing loan well before the estimated closing period of the loan.
D)the value of a house is higher than the loan taken on the property.
E)the borrower is planning to restructure the loan taken for making mortgage payments.

Question

Quizplus · Accepted Answer

Foreclosure occurs when lenders seek to recover the balance of a loan from borrowers who have stopped making payments by forcing the sale of the asset used as collateral, in this case, a home.

A Foreclosure Happens When