Foreclosure is a legal process initiated by a lender (mortgagee) to recover the outstanding balance of a loan from a borrower (mortgagor) who has defaulted on their payment obligations. The process enforces the lender's security interest in the property, which was pledged as collateral for the loan. It typically culminates in a forced public sale of the property, with the proceeds used to satisfy the debt. This action terminates the borrower's equitable right of redemption and ownership interest in the property.

A. The speed of a sale does not define it as a foreclosure; the foreclosure process in Maryland typically takes several months, not less than a week.

B. This describes a specific outcome of a foreclosure auction where the property becomes Real Estate Owned (REO), not the definition of the foreclosure process itself.

D. This describes a "short sale," a transaction where the lender agrees to a sale price that is less than the outstanding mortgage balance.

1. Maryland Code, Real Property, § 7-105.1. This section outlines the required procedures for a lender to initiate a power of sale or foreclosure, which is predicated on a borrower's default on a mortgage or deed of trust. The statute's existence and content confirm that foreclosure is a legal process for selling property to satisfy a debt.

2. University of Maryland Extension. In publication FS-967, "Homeowners: Facing Foreclosure?", foreclosure is defined as "a legal process that allows your lender to sell your house because you have not made your mortgage payments." This directly supports the concept of a forced sale due to default.

3. Consumer Financial Protection Bureau (CFPB). In its "Mortgage and housing assistance glossary," the CFPB, a U.S. government agency, defines foreclosure as a process that "happens when a homeowner fails to pay the mortgage... If the homeowner cannot pay off the outstanding debt, or sell the property via short sale, the property then goes to a foreclosure auction." This confirms the cause is default and the result is a forced sale.