What is the outcome of foreclosure proceedings?

In foreclosure proceedings, the primary outcome involves the lender reclaiming the property when the borrower defaults on their mortgage obligations. This process often leads to the lender taking legal action to sell the property in order to recoup the outstanding debt. When the lender transfers the real property from the borrower, they are effectively reclaiming ownership as compensation for the unpaid mortgage.

The borrower does not retain the property because foreclosure signifies that they have failed to meet their mortgage payments. The property is typically sold, but not necessarily at market value—it may go for less in order to facilitate a quicker sale. Therefore, compensation to the borrower is not a typical outcome; rather, the borrower's ownership is terminated. These elements illustrate why the lender's transfer of property is the correct understanding of what occurs during foreclosure.