Rico borrows $110,000 from Sterling Bank to buy a home.If he fails to make payments on the mortgage,the bank has the right to repossess and auction off the property securing the loan.This is
Foreclosure.

Question

Rico borrows $110,000 from Sterling Bank to buy a home.If he fails to make payments on the mortgage,the bank has the right to repossess and auction off the property securing the loan.This is​
Foreclosure.

Quizplus · Accepted Answer

Foreclosure is the legal process by which a lender takes possession and sells a property in order to recover the balance of a defaulted loan. In this scenario, if Rico fails to make payments, Sterling Bank has the right to foreclose on the property in order to recoup the amount of the mortgage loan.

Rico Borrows $110,000 from Sterling Bank to Buy a Home