What legal action occurs when a homeowner unwillingly surrenders their property to the lender due to loan default?

The correct choice is foreclose because it specifically refers to the legal process initiated by a lender when a borrower defaults on their mortgage loan. In this situation, the lender can take ownership of the property to recover the outstanding debt. Foreclosure typically involves the court system and can vary by state, but it is fundamentally a means for the lender to reclaim the property when the homeowner is unable to fulfill their loan obligations.

Eviction pertains to a landlord-tenant scenario where a tenant is removed from a rental property, which does not apply to homeownership situations. Repossession is more commonly used in the context of personal property, such as vehicles, and does not typically relate to real estate. Seizure could imply the taking of property but is generally associated with legal actions regarding assets owned by the state or in criminal proceedings, rather than the mortgage context. Thus, foreclosure is the appropriate term for the process by which a lender gains ownership of a property following a homeowner's default on the mortgage.