A mortgage lender can take legal action to recover unpaid loans through what legal process?

A mortgage lender can take legal action to recover unpaid loans through foreclosure. Foreclosure is a legal process initiated by the lender to reclaim the property when the borrower fails to make mortgage payments. This process allows the lender to sell the property to recover the outstanding loan amount.

The primary purpose of foreclosure is to protect the lender's financial interest by enabling them to obtain possession of the collateral—typically the property itself. The process involves filing a lawsuit or complying with state statutes regarding the non-payment of the mortgage, ultimately resulting in a court judgment or public auction of the property to satisfy the debt.

In contrast, eviction pertains to the process by which a landlord removes a tenant from rental property and is unrelated to mortgage recovery. Assessment involves evaluating the value or condition of a property, typically for tax purposes, and does not pertain to recovering unpaid loans. Condemnation refers to a government's right to take private property for public use, often involving compensation to the owner, but it is unrelated to the foreclosure process specific to mortgage lenders and unpaid loans.