Foreclosure is the legal way for a lender enforce repayment of a mortgage. When a borrower stops making payments on a mortgage loan, the lender will attempt to recover the balance of the loan by forcing the sale of the real estate used as the collateral.
Category: Mortgage Vocabulary
What does “collateral” mean?
Assets that are provided as security for a loan.
What does “debt instrument” mean?
A legally enforceable, written promise to repay debt. ** As opposed to a banjo made of money – that’s known as an asset instrument 😉