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Simple English definitions for legal terms
strict foreclosure
Read a random definition: conforming use
A quick definition of strict foreclosure:
Strict foreclosure is a legal process where the lender (the person who gave the loan) takes ownership of the property without selling it, after the borrower (the person who received the loan) fails to pay back the loan within a certain time period. This process is only used in special situations and is not common.A more thorough explanation:
Strict foreclosure is a legal process used by a lender to take ownership of a property when the borrower (mortgagor) fails to pay the mortgage debt within a court-specified period. Unlike other foreclosure methods, strict foreclosure does not involve a sale of the property.
For example, if a borrower defaults on their mortgage payments, the lender may initiate strict foreclosure proceedings. The court will then give the borrower a specific period to pay off the debt. If the borrower fails to pay within that period, the lender will take ownership of the property.
Strict foreclosure is a rare procedure and is only used in special situations. It is only permitted in a few states that allow this remedy generally.