Who must a creditor send notice to before a foreclosure sale?

In secured transactions, when a creditor intends to proceed with a foreclosure sale, it is critical to ensure that all parties who have a stake in the secured obligation are notified. This includes not only the primary debtor, who is primarily responsible for the obligation, but also any secondary obligors who may have guaranteed the debt or have a secondary obligation toward it.

By sending notice to both the debtor and any secondary obligors, the creditor fulfills their duty to inform all affected parties, allowing them the opportunity to take necessary actions or make arrangements prior to the sale. This practice is rooted in principles of fairness and transparency in the creditor-debtor relationship, as it allows all relevant parties to be aware of the impending actions regarding the collateral.

In contrast, notifying only the primary debtor would leave secondary obligors unaware of the potential loss they may face or opportunities they may have to protect their interests. Similarly, informing only other secured creditors or local authorities does not adequately encompass the need to notify those who are jointly liable for the debt. Thus, the correct course of action requires notification of both the debtor and any secondary obligors to uphold the rights and obligations established under the agreement.