A more thorough explanation:

A mortgage is a legal agreement where a person borrows money from a financial institution to buy a property. The property is used as security for the loan. The person who borrows the money is called the mortgagor, and the financial institution is called the mortgagee.

The mortgagor pays back the loan in installments, which include both the interest and a payment on the principle amount borrowed. If the mortgagor fails to make payments, the mortgagee can foreclose on the property. Foreclosure means the mortgagee can declare that the entire mortgage debt is due and must be paid immediately. If the mortgage debt is not paid, the mortgagee can seize the property and sell it to pay off the remaining debt.

There are different types of foreclosure processes depending on state law and the terms of the mortgage. The most common processes are court proceedings (judicial foreclosure) or grants of power to the mortgagee to sell the property (power of sale foreclosure).

For example, if John wants to buy a house but doesn't have enough money, he can get a mortgage from a bank. The bank will lend him the money to buy the house, and John will pay back the loan in installments. If John fails to make payments, the bank can foreclose on the house and sell it to pay off the remaining debt.