Anyone know the proper translation for foreclosure?
“Because he failed to pay his monthly mortgage payments, he is now facing foreclosure. If he is foreclosed upon, the bank will repossess his house.”
Cancellation of mortgagor’s (homeowner’s) redemption rights? This dictionary definition only captures (at most) the meaning of one type of foreclosure. (In some states, the homeowner does not actually own the home until the mortgage is paid off. Before payoff, the deed is held in trust by a 3rd party. If the homeowner does not pay on time, then in a foreclosure, the homeowner loses the right to acquire title to the property.)
But in most states, the homeowner owns the house outright and the bank only has a lien on the property. The bank must then use the legal process to acquire title to the property by exercising its right to seize the collateral due to nonpayment of the loan.
If anyone knows a proper translation for this second type of foreclosure, please help.