Reforming Foreclosure: The Uniform Nonjudicial Foreclosure Act

Abstract:     
The Uniform Nonjudicial Foreclosure Act is one of the few creative approaches to mortgage foreclosure to emerge in many decades. In this Article, the authors examine why uniformity in foreclosure law among the states is desirable and, accordingly, advocate foreclosure reform. They analyze the Act, promulgated in 2002, giving specific attention to the Act's new methods of foreclosure by negotiated sale and by appraisal. They also examine the Act's numerous special protections for residential debtors and consider the effectiveness of the Act's procedures concerning subordinate leases, titles arising from foreclosures, surpluses and deficiencies resulting from foreclosures, and fairness of foreclosure prices. They conclude that the Act is fair and well balanced as between creditors and debtors and that it has the potential to make foreclosures more efficient, benefiting all affected parties. Finally, they argue that because a critical mass of state legislatures likely will not adopt the Act, Congress should consider enacting it as a federal statute.

Keywords: mortgage foreclosure, uniform foreclosure laws, The Uniform Nonjudicial Foreclosure Act

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