What occurs in a strict foreclosure?

In a strict foreclosure, a court orders the transfer of the property directly to the lender without a judicial sale process. This typically happens when the borrower defaults on the mortgage and the lender wants to reclaim the property without going through the standard foreclosure auction procedure. During strict foreclosure, the lender is granted possession of the property since the borrower has failed to meet payment obligations, and the property is essentially returned to the lender as a result of the default.

This process emphasizes the lender’s ability to reclaim the property without incurring additional costs associated with selling the property or allowing the borrower time to remedy the default, as would be the case in other foreclosure types. Therefore, the correct option clearly reflects the procedure and consequences of a strict foreclosure, as it results in a direct property transfer to the lender as a legal remedy for non-payment.