Definitions for "STRICT FORECLOSURE"
Process by which the creditor receives title to real property without a period for redemption or sale of the property in exchange for having no right to obtain a deficiency judgment.
A legal premise in some states that the lender owns a property and may simply evict the borrower for nonpayment and gain full and complete title free of the borrower's right to redeem after the prescribed waiting period has passed.
In a strict foreclosure procedure, after a delinquent borrower has been notified and the proper papers have been filed, the court designates a specific period during which the balance of the default must be paid in full. If the payment is not made, the borrower's equitable and statutory redemption rights are waived and the court awards full legal title to the lender. There is no deficiency judgement in strict foreclosure cases. (See foreclosure, judicial foreclosure, nonjudicial foreclosure)