The action through which the mortgage holder takes the property from the mortgagor, ends the mortgagor's rights in the property, and sells the property to pay the mortgage debt is known as:
A)foreclosure.
B)equity of redemption.
C)adverse possession.
D)an executed deed of trust.

Question

Quizplus · Accepted Answer

Foreclosure is the legal process in which the mortgage holder takes possession of the property from the mortgagor due to non-payment of the mortgage, and then sells the property to recover the outstanding mortgage debt. This action effectively ends the mortgagor's ownership rights in the property. Equity of redemption refers to the mortgagor's right to redeem the property by paying off the outstanding mortgage debt before the foreclosure sale. Adverse possession refers to a situation in which someone gains ownership of real property by occupying it for a certain period of time without the owner's permission. An executed deed of trust is a document that conveys title to property to a trustee, who holds it as security for a loan.

The Action Through Which the Mortgage Holder Takes the Property