Which of the following is NOT a consumer expectation in strict foreclosure cases?

In the context of strict foreclosure cases, the concept revolves around the rights and expectations of consumers concerning the treatment of collateral and the debt owed. The correct answer, which indicates a statement that is not a consumer expectation, highlights a specific rule related to strict foreclosure.

Strict foreclosure is a process that allows a secured party to take ownership of the collateral in satisfaction of the debt without needing to go through the traditional methods of foreclosure or sale, typically when the value of the collateral is less than the debt owed. In this framework, one key expectation is that no strict foreclosure can occur if the debtor has paid a significant portion of the principal, specifically around 60% or more. This rule is in place to protect debtors who have made substantial payments towards their debt, ensuring they maintain some equity in the collateral.

The assertion that strict foreclosure can occur after any percentage of payment is not aligned with consumer expectations. In practice, there are often thresholds that must be observed; if a debtor has made certain payments, strict foreclosure is typically disallowed to ensure fairness and equity. This protects consumers from losing collateral when they have already invested considerable resources towards ownership.

Overall, the expectation that strict foreclosure may occur indiscriminately, regardless of the amount paid toward the debt,