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 borrowers who have quit making payments 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

A foreclosure occurs when the borrower has defaulted on their mortgage payment, and the lender attempts to recover the unpaid loan balance by forcing the sale of the home pledged as collateral. This process is called foreclosure.

A Foreclosure Happens When