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Right of Foreclosure

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Right of Foreclosure
The legal right of a mortgage lender to take ownership of a property securing a mortgage if the borrower does not meet the terms of the lending agreement. Most obviously, the right of foreclosure is exercised if the borrower does not pay the mortgage.


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If a developer were to collapse, the banks would have legal right of foreclosure.
Another statute was passed that said that when the mortgage loans were made the borrower would retain ownership of the mortgaged property, but the lender would have the right of foreclosure, the power to take possession of it and to sell it if the loans were not paid as instructed.
 
 
 
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