Which one of the following statements is correct?

A. Foreclosure action cannot be taken till a notice is served on the policyholder

B. When a foreclosure action is taken, nothing is payable to the policyholder

C. Both the statements above are correct

D. Both the statements above are wrong

Answer: Option A

Solution(By Examveda Team)

Foreclosure action cannot be taken till a notice is served on the policyholder. Foreclosure” is just the series of steps a lender has to take in order to force the sale of such property and use the sale proceeds to recover its unpaid debt.