It is a presentation on Foreclosure in housing finance and legal documentation in Pakistan. Housing finance is to provide funds which home-buyers need to purchase their homes. It is the legal process by which a mortgage lender (mortgagee), or other lien holder obtains a termination of a mortgage borrower (mortgagor `s) equitable right of redemption, either by court order or by operation of law after following a specific statutory procedure.

TYPES OF FORECLOSURE

1) Foreclosure by judicial sale: 

Foreclosure by judicial sale more commonly known as judicial foreclosure means the sale of mortgage property under the supervision of court with the proceeds going first to satisfy the mortgage, the other lien holders and finally the mortgagor/borrower if any proceeds are left.

2) Foreclosure by Power of Sale:

Foreclosure by power of sale also known as non-judicial foreclosure in which the power of sale clause is included in the mortgage deed and this process involves the sale of the property by the mortgage holder without court supervision.

3) Strict Foreclosure:

Although it is not very common but as a kind of foreclosure, I would like to define what the strict foreclosure means. In strict foreclosure suit  is brought by the mortgagee and if successful court orders the defaulter mortgagor to pay the mortgagee within a specified period of time and if the mortgagor fails to do so the mortgage holder gains the title to the property with no obligation to sell it.