Foreclosure of Real Property

Summary

This practice note addresses the foreclosure of commercial and residential real property. While the foreclosure process varies substantially from state to state, its fundamental purpose is the same—to extinguish inferior liens and provide for the sale of the mortgaged premises and the application of the proceeds of sale to the mortgage debt. The timing and cost of enforcing this remedy depends largely on whether the state where the real property is located requires the lender to go through the more elaborate process of a judicial foreclosure or allows for one of the more expedited methods of non-judicial foreclosure. This practice note should serve as a starting point, and practitioners should review the foreclosure laws of the state where the mortgaged property is located and/or to consult an experienced local foreclosure practitioner before bringing a foreclosure action.