Indorsement, Negotiation and Transfer of Notes
How a negotiable note moves from one owner to another under UCC Article 3 — by indorsement and delivery, or by transfer.
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Person Entitled to Enforce a Note
Under UCC Article 3, the right to enforce a negotiable note belongs to a “person entitled to enforce” — a status that turns on possession and the holder rules, not on ownership alone.
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Holder in Due Course
A holder in due course is a holder who takes a negotiable instrument for value, in good faith and without notice of certain problems — and as a result takes it free of many defenses.
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Assignments of Notes, Mortgages and Receivables
An assignment transfers rights from one party (the assignor) to another (the assignee). In lending, loans, mortgages and receivables are routinely assigned, sold and transferred.
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Foreclosure by State
Whether foreclosure in a state is primarily judicial, primarily nonjudicial, or both — and the main statute that governs it.
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Nonjudicial Foreclosure (Power of Sale)
In a nonjudicial foreclosure, the property is sold without a lawsuit, under a power-of-sale clause in the deed of trust or mortgage and the procedures set by state statute.
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Judicial Foreclosure
In a judicial foreclosure, the foreclosing party must file a lawsuit and obtain a court judgment before the property can be sold.
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Foreclosure: How It Works
Foreclosure is the legal process a lender or other secured party uses to sell real property that secures a debt after the borrower defaults. Each state decides how foreclosure works within its borders.
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How State Court Systems Work
Most lawsuits in the United States are filed in state courts, not federal courts. Each state runs its own court system under its own constitution, statutes and rules of procedure.