Question

If a lender is not paid and they take the collateral that secured the loan, this is called _____. garnishment bankruptcy foreclosure repossession

Answer 1

Answer:

Foreclosure

Explanation:

The legal process by which the lender takes control of a property, expels the owner and  and sells the home if the homeowner is unable to principle and interest his mortgage is called foreclosure.

It derives legal basis from deed of trust contract, bit gives the lender right to use the property as a collateral if the buyer is unable to repay the amount. The foreclosure process starts when the borrower misses mortgage payment.

Answer 2

It would be repossession like if you miss any payments on a vehicle it can be repo'd.