What legal action is referred to as Foreclosure and Judicial Sale?

Foreclosure and Judicial Sale refer to a legal process initiated when a mortgagor defaults on their mortgage payments. In this context, foreclosure allows the lender to regain ownership of the property by taking legal action to forfeit the mortgagor's equity in the property. This is a critical step for lenders to recover their financial investment, as the property may be sold in a judicial sale to satisfy the outstanding debt. The procedure involves court oversight to ensure that the process adheres to legal standards, providing a safeguard for the rights of all parties involved, especially the homeowner who may lose their property.

The other options discussed do not accurately describe foreclosure or judicial sale. For instance, the process of governmental seizure for property taxes specifically addresses tax delinquency and does not involve mortgages directly. Meanwhile, altering mortgage terms and extending payment deadlines relate to modifications of existing contracts rather than the legal repercussions of defaults or foreclosures.