Simple English definitions for legal terms
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Mortgage foreclosure is a legal process where a lender takes away a borrower's property because they have not paid back the money they borrowed. The lender can either take ownership of the property or sell it to pay off the debt. There are different types of foreclosure, including judicial foreclosure, where a court is involved, and nonjudicial foreclosure, where a court is not involved. Tax foreclosure is when a public authority takes and sells a property because the owner has not paid their taxes.
Mortgage foreclosure is a legal process where a lender (the mortgagee) takes action to end a borrower's (the mortgagor's) ownership of a property. This is done either to gain ownership of the property or to force a sale to pay off the unpaid debt secured by the property.
There are different types of mortgage foreclosure:
For example, if a borrower fails to make mortgage payments, the lender may start a foreclosure process to take ownership of the property. The lender may choose to go through a judicial foreclosure, which involves going to court, or a nonjudicial foreclosure, which does not involve court action.
Another example is if a borrower owes property taxes and fails to pay them, the local government may start a tax foreclosure process to seize and sell the property to pay off the taxes owed.