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

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​

Quizplus · Accepted Answer

Foreclosure refers to the process whereby a lender (in this case, Sterling Bank) repossesses and auctions off a property securing a loan when the borrower (Rico) fails to make payments on the mortgage.

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