Strict Foreclosure

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.

A decree that orders the payment of a mortgage of real property.

A strict foreclosure decree sets out the amount due under the mortgage, orders it to be paid within a particular time limit, and provides that if payment is not made, the mortgagor's right and equity of redemption are forever barred and foreclosed. If the mortgagor does not pay within the time designated, then title to the property vests in the mortgagee without any sale thereof.