A legal procedure whereby property used as security for a debt is
sold to satisfy the debt in the event of default in payment of
the mortgage note or default of other terms in the mortgage
document. The foreclosure procedure brings the rights of all
parties to a conclusion and passes the title in the mortgaged
property to either the holder of the mortgage or a third party
who may purchase the realty at the foreclosure sale, free of all
encumbrances affecting the property subsequent to the mortgage.