“Should the mortgagor default in his obligations under the mortgage, the mortgagee will seek to ‘foreclose’, — i.e., ‘end’ or ‘close’ the mortgagor’s rights in the security. After taking the appropriate statutory steps, the mortgagee will sell the mortgaged property. If the sale is to someone other than the mortgagor or the mortgagee (a ‘third party’ sale) the proceeds will go: first, to pay the costs of the foreclosure proceedings; second, to pay off the principal indebtedness and accrued interest; third, if there is anything left over (i.e., any ‘equity’ existed) this is paid to the mortgagor.” Edward H. Rabin, Fundamentals of Modern Real Property Law 1087 (1974).
foreclose
foreclose, vb. To terminate a mortgagor’s interest in property; to subject (property) to foreclosure proceedings. [Cases: Mortgages 320. C.J.S. Mortgages §§ 490–491, 495, 559, 568.]
