How does foreclosure typically conclude?

Foreclosure typically concludes with the sale of the property to resolve a debt, which is what makes this option correct. When a borrower fails to make scheduled mortgage payments, the lender initiates the foreclosure process to recoup the owed amount. This legal process involves taking possession of the property and ultimately selling it, often at a public auction, to recover the outstanding debt. The proceeds from the sale are then applied to the mortgage balance, aiming to cover what the borrower owes.

This process is crucial as it allows lenders to minimize their losses and provides a clear resolution to the delinquent debt. In most cases, the ownership of the foreclosed property transfers to the new buyer, who may either be an investor or a different homebuyer who participates in the auction.

The other options do not accurately reflect the typical conclusion of foreclosure. A reduction in the mortgage balance does not represent a resolution; instead, the debt is settled through the sale process. An invitation to renegotiate is more aligned with loss mitigation efforts and occurs before reaching foreclosure. Finally, a judicial review of the debt might happen in some cases but is not the common conclusion of a foreclosure process, which is primarily about the sale of the property.