Which of the following is NOT a requirement for foreclosure by sale?

In the context of foreclosure by sale under secured transactions, certain requirements must be met to ensure the process is fair and protects the interests of all parties involved. Among these, the requirement regarding the appraisal of collateral comes into play.

Appraisals are not universally mandated in the foreclosure process by sale. While lenders and creditors often conduct appraisals to determine the market value of the collateral, it is not a legal requirement as part of the foreclosure process itself. The other options, however, represent established requirements: creditors must aim to sell the collateral for a reasonable price, they can participate in bidding if the collateral is of a type generally sold at auctions, and they must provide notice to all interested parties about the sale. This ensures transparency and fairness in the process.

Therefore, the assertion that the collateral must have been appraised by a third party is not a criterion for foreclosure by sale, making it the correct answer to the question. The absence of a mandatory appraisal requirement allows for greater flexibility in how a creditor may conduct the sale while still adhering to the necessary elements of the process.