finance

strict foreclosure

Strict foreclosure is a foreclosure method, permitted in only a few states, in which a court gives the defaulting borrower a set period to pay the debt; if the borrower fails to pay, the court awards full title directly to the lender without a public sale. Because there is no auction, any equity the borrower had may be lost. It contrasts with judicial foreclosure and nonjudicial (power-of-sale) foreclosure, which involve a sale.