Also known as: statutory foreclosures · nonjudicial foreclosure · non-judicial foreclosure
Written by attorneys · grounded in primary & secondary sources — see below
A foreclosure process conducted according to the mortgage instrument and state statute by which the mortgaged property is sold at a nonjudicial public sale by a public official, the mortgagee, or a trustee. The mortgage or statute dictates the procedure and determines notice, sale, and redemption rights.
Sasha Stone defaulted on payments secured by a deed of trust on her commercial building. The lender directed the trustee to conduct a statutory foreclosure sale under the power-of-sale clause and state law. The trustee posted the required notices and sold the property at public auction without filing a court action.
Sterling Manufacturing missed several loan installments on its warehouse. The creditor waited until the default occurred and all contractual and statutory conditions were met before authorizing the trustee to begin statutory foreclosure proceedings. The notice disclosed the creditor and the authorized party conducting the sale.
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Statutory foreclosure proceeds under the mortgage or deed of trust and state statute through a nonjudicial public sale. Judicial foreclosure requires court action to terminate the equity of redemption.
A creditor may commence statutory foreclosure only after default in the obligation and satisfaction of all conditions required by the mortgage agreement and by law.
No. Statutory foreclosure is a nonjudicial process that relies on the mortgage instrument and state statute rather than court action.
The notice must disclose the name of the creditor and, if applicable, the person authorized by the creditor to foreclose.
…value significantly less than the outstanding debt and the estimated market value of the property. The foreclosure deed and the statutory foreclosure affidavit were recorded on May 23, 2008. On September 2, 2008, more than one year after the sale and after recording of the sale, American Home Mortgage Servicing, Inc., "as…