Also known as: forecloses the mortgage · foreclosed the mortgage · foreclosing the mortgage · foreclosure of the mortgage · foreclosure · mortgage foreclosure
Written by attorneys · grounded in primary & secondary sources — see below
The process by which a mortgagee terminates the mortgagor's equity of redemption and obtains the property or its value. Types include judicial foreclosure through court action, power-of-sale or nonjudicial foreclosure under the mortgage or deed of trust and state statute, and strict foreclosure in limited jurisdictions.
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Farah Fox borrowed from Franklin Foundry to buy a warehouse and granted a mortgage under title theory. When Farah defaulted, Franklin initiated foreclosure and asserted immediate possession rights. The court granted Franklin possession because the mortgage conveyed legal title, leaving Farah only an equity of redemption that foreclosure would cut off.
Foxfire Biotech purchased land subject to a recorded conservation servitude. A later mortgagee foreclosed its junior lien. The buyer at the foreclosure sale took title still bound by the servitude because the mortgage lacked priority over the earlier-created burden.
Nora obtained a charging order against Annie's interest in Fair Buildings. After eighteen months of minimal distributions, Nora showed the judgment would not be paid within a reasonable time. The court foreclosed the charging order lien and ordered sale of the transferable interest to Park Properties.
A law firm sent personalized letters to homeowners facing imminent foreclosure, offering representation. State regulators sought to ban the mailings as improper solicitation. The court held the targeted letters constituted protected commercial speech that could not be categorically prohibited.
Fumiko Fujimoto defaulted on a mortgage held by Foster Forge. To avoid foreclosure costs and publicity, Fumiko voluntarily conveyed the property by deed in lieu of foreclosure. The deed discharged the debt and extinguished the mortgage without a public sale.
Ferrum Metals granted an access easement across its land to an adjoining owner. A later mortgagee foreclosed its junior lien. The foreclosure sale did not extinguish the easement because the mortgage lacked priority over the earlier servitude.
A mortgagee must establish a valid underlying obligation secured by the mortgage and a default by the mortgagor. Foreclosure then terminates the equity of redemption and transfers the property or its value to satisfy the debt.
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Title theory states give the mortgagee legal title and possession rights upon default. Lien theory states require the mortgagor to retain title until foreclosure cuts off the equity of redemption. Intermediate theory blends both approaches and shapes notice, sale, and redemption rights.
…function to denigrate. Indeed, in the present case, it is indicated that because disability benefits were terminated there was a foreclosure upon the Eldridge home and the family's furniture was repossessed, forcing Eldridge, his wife, and their children to sleep in one bed. Tr. of Oral Arg. 39, 47-48. Finally, it is also no…
…as Justice Blackmun apparently believes. See post , at 1042, and n. 5. Given the South Carolina Supreme Court's dismissive foreclosure of further pleading and adjudication with respect to the pre-1990 component of Lucas's takings claim, it is appropriate for us to address that component as if the case were here on the…
…in one job, taken alone, might make him somewhat less attractive to some other employers would hardly establish the kind of foreclosure
…community property without his spouse's consent. In 1976, after appellee refused to pay her husband's note, appellant commenced foreclosure
…not survive the death of the mortgagor. Their note was payable upon demand and they could have enforced the lien and mortgage
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A court may foreclose a charging order lien when distributions will not satisfy the judgment debt within a reasonable time. The purchaser receives only the transferable interest and does not become a partner.
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A servitude survives foreclosure unless the foreclosed lien has priority over the servitude. Later liens given statutory priority ahead of earlier servitudes do not extinguish easements or restrictive covenants created as part of a general plan.
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A deed in lieu is a voluntary transfer of title in satisfaction of the debt that avoids the foreclosure process. It must be supported by consideration and free of duress. It discharges the mortgage but may affect junior liens differently by jurisdiction.
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