What is it called when the bank takes possession from a mortgager because of default payments?

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1056407

2026-03-31 12:00

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When a bank takes possession of a property from a mortgagor due to default on payments, it is called foreclosure. This legal process allows the lender to reclaim the property and sell it to recover the outstanding loan balance. Foreclosure typically occurs after a series of missed payments and can significantly impact the borrower's credit score.

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