Right of Foreclosure

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Right of Foreclosure

The legal right of a mortgage lender to take ownership of a property securing a mortgage if the borrower does not meet the terms of the lending agreement. Most obviously, the right of foreclosure is exercised if the borrower does not pay the mortgage.
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It may be intuitive that the party purporting to exercise a particular right (the foreclosure rights afforded to it under the contract) should be forced to prove that it has valid title to such right (in this instance, that the assignment of an admittedly valid contract was valid).
In particular, judges may assume that the purported assignee is in fact (or should be considered as) a legally valid assignee and that the purported assignor knows about the purported assignment and foreclosure proceedings, or that the assignor would be indifferent as to the exercise of the foreclosure right. Each of these assumptions is questionable, and the judicial employment of such assumptions is made even more dubious by the extrinsic desire of the judicial system to reduce the number of foreclosure cases.