What action can a lender take if a borrower defaults on a loan secured by a mortgage?

When a borrower defaults on a loan that is secured by a mortgage, the lender has the legal right to initiate foreclosure proceedings. Foreclosure is the process through which a lender seeks to recover the balance of a loan from a borrower who has stopped making payments. This typically involves the sale of the property at a public auction after a legal process is followed.

Initiating foreclosure allows the lender to take possession of the property and recoup the amount owed on the mortgage loan. The process involves notifying the borrower of the default and giving them an opportunity to cure the default, but if the borrower fails to remedy the situation, the lender can move forward with the foreclosure.

The other options do not represent appropriate actions the lender can take as a direct response to a mortgage default. Filing for bankruptcy is a remedy available to the borrower, not to the lender. Assigning a lien could occur in different contexts, but it is not a direct response to default. Submitting an affidavit does not pertain to addressing borrower default in the context of mortgage agreements.