Mortgage foreclosure is a legal process that occurs when a borrower fails to make their mortgage payments. In this situation, the lender, usually a bank or financial institution, has the right to take possession of the property used as collateral for the loan. This process typically begins after several missed payments and involves notifying the borrower of the default. Once the foreclosure process starts, the property may be sold at a public auction to recover the outstanding debt. If the sale does not cover the full amount owed, the borrower may still be responsible for the remaining balance, depending on state laws and the terms of the mortgage agreement.