Foreclosure is the painful process of repossessing a property, typically due to a borrower’s failure to make payments on a mortgage loan. When this occurs, the lender has the legal right to take possession of the property, and then to sell it in order to use the proceeds from the sale to cover the remaining debt. It is important to note that, in most cases, the lender is not obligated to accept the proceeds from the sale of the property as the full payment of the remaining debt. Instead, they can choose to pursue other legal remedies to collect the full amount.
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Daniel H. Weberman, The Kabinet Founder – Terry I. Weberman, The Kabinet CPA
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