Vito borrows $110,000 from Watershed 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

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This scenario describes the process of foreclosure, where the lender (in this case, Watershed Bank) has the right to repossess and sell the property if the borrower (Vito) fails to make mortgage payments. A short sale involves selling the property for less than the outstanding mortgage balance, while forbearance is an agreement between the lender and borrower to temporarily suspend or lower payments. The right of redemption is a legal concept allowing a borrower to reclaim their property after foreclosure by paying off the outstanding debt.

Vito Borrows $110,000 from Watershed Bank to Buy a Home