Which term refers to enforcing a security interest in land?

The term "foreclosure" specifically refers to the legal process by which a lender enforces a security interest in land when the borrower fails to meet the obligations of a loan, typically by not making mortgage payments. In this process, the lender seeks to take possession of the property that was used as collateral for the loan.

When foreclosure occurs, the property is often sold at auction to recoup losses, and the borrower's rights to the property are extinguished. This makes foreclosure a crucial term in real estate and title insurance as it directly relates to the enforcement of the security interest and the lender's right to recover the owed amounts through the sale of the property.

In contrast, other terms like "encumbrance," which refers to any claim or liability against a property that may affect ownership, are broader and do not specifically relate to the enforcement action taken by a lender. "Conveyance" refers to the act of transferring property from one person to another, while "levy" typically pertains to the legal seizure of property to satisfy a debt or judgment but does not specifically denote the process for handling default on a mortgage loan. Therefore, the choice of foreclosure accurately captures the process of enforcing a security interest in land.