A foreclosure proceeding in which the mortgagee has the right to possess the mortgaged property directly upon default on the mortgage agreement. This type of foreclosure is rarely used in contemporary markets. Contrast with judicial foreclosure.


Example: Under a strict foreclosure proceeding, the lender requested the court to order the delinquent borrower to pay the debt within the next 2 months. When the borrower failed to do so, the lender took possession of the property and canceled the indebtedness.

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Dictionary of Real Estate Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved.

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