FORECLOSURE
A procedure by which the holder of a mortgage—
an interest in land providing security for the per-
formance of a duty or the payment of a debt—sells
the property upon the failure of the debtor to pay
the mortgage debt and, thereby, terminates his or
her rights in the property.
Statutory foreclosure is foreclosure by per-
formance of a power of sale clause in the mort-
gage without need for court action, since the
foreclosure must be done in accordance with the
statutory provisions governing such sales.
Strict foreclosure refers to the procedure
pursuant to which the court ascertains the
amount due under the mortgage; orders its pay-
ment within a certain limited time; and pre-
scribes that in default of such payment a debtor
will permanently lose his or her equity of
redemption, the right to recover the property
upon payment of the debt, interest, and costs.
The title of the property is conveyed absolutely
to the creditor, on default in payment, without
