What is the term for the legal process by which a lender can reclaim property when the borrower defaults?

The term for the legal process by which a lender can reclaim property when the borrower defaults is foreclosure. This process involves the lender taking possession of the mortgaged property due to the borrower's failure to meet the loan obligations, typically after a series of missed payments.

Foreclosure allows the lender to recover the outstanding amount due on the mortgage by selling the property, which is often necessary to mitigate the lender's losses. This process is regulated by state law, and specific procedures must be followed to ensure that the borrower’s rights are protected during the foreclosure.

Understanding foreclosure is crucial for mortgage loan originators, as it impacts how loans are structured and the importance of ensuring borrowers understand their responsibilities. In contrast, attachment refers to a legal seizure of property to secure a lawsuit, replevin pertains to reclaiming personal property, and eviction involves removing tenants from rental property, which are unrelated to the specific process of reclaiming a defaulted mortgage property.