Foreclosure

===People's Republic of China===
Foreclosure in the [[People's Republic of China]] takes place as a form of debt enforcement proceedings under strict judicial foreclosure, which is only allowed by law of guarantee and law of property right.

China amended the ''Constitution of the Peoples's Republic of China'' (adopted April 12, 1988), to allow transfer of land rights, from "granted land rights" to "allocated land rights" thus paving the way for private land ownership, allowing for the renting, leasing, and mortgage of land. The ''1990 Regulations on Granting Land Use Rights'' dealt further with this followed by the ''Urban Real Estate Law'' (adopted July 5, 1994),<ref>[https://digital.lib.washington.edu/dspace-law/bitstream/handle/1773.1/840/8PacRimLPolyJ515.pdf?sequence=1 Pacific Rim Law and Policy Journal; vol 8 no. 3 page 516] {{webarchive|url=https://web.archive.org/web/20150715023254/https://digital.lib.washington.edu/dspace-law/bitstream/handle/1773.1/840/8PacRimLPolyJ515.pdf?sequence=1 |date=2015-07-15 }} -Retrieved 2013-07-21</ref> the "Security Law of the People's Republic of China" (adopted June 30, 1995), and then the "Urban Mortgage Measures" (issued May 9, 1997)<ref>[https://digital.lib.washington.edu/dspace-law/bitstream/handle/1773.1/840/8PacRimLPolyJ515.pdf?sequence=1 Pacific Rim Law Policy Journal; vol 8 no.3 page 518] {{webarchive|url=https://web.archive.org/web/20150715023254/https://digital.lib.washington.edu/dspace-law/bitstream/handle/1773.1/840/8PacRimLPolyJ515.pdf?sequence=1 |date=2015-07-15 }} -Retrieved 2013-07-21</ref> resulting in land privatization and mortgage lending practices.

====Mortgages and foreclosure====
Chinese law and mortgage practices have progressed with safeguards to prevent foreclosures as much as possible. These include mandatory secondary security, rescission (Chinese Contract Law), and maintaining accounts at the lending bank to cover any defaults without prior notice to the
borrower.<ref>[https://digital.lib.washington.edu/dspace-law/bitstream/handle/1773.1/840/8PacRimLPolyJ515.pdf?sequence=1 Pacific Rim Law Policy Journal; vol 8 No.3 page 558] {{webarchive|url=https://web.archive.org/web/20150715023254/https://digital.lib.washington.edu/dspace-law/bitstream/handle/1773.1/840/8PacRimLPolyJ515.pdf?sequence=1 |date=2015-07-15 }} -Retrieved 2013-07-20</ref> A mortgagee may sue on a note without foreclosing, obtain a general judgment, and collect that judgment against other property of the mortgagor, without foreclosing. When all other avenues have failed a lender may seek a '''judgement of foreclosure'''. Under the "Civil Procedure Law", foreclosures should be finalized in a six-month time frame but this is dependent on several things including if the mortgager applies to the court for execution of the judgment.<ref>[https://digital.lib.washington.edu/dspace-law/bitstream/handle/1773.1/840/8PacRimLPolyJ515.pdf?sequence=1 Pacific Rim Law Policy Journal; vol 8 No.3 page 564] {{webarchive|url=https://web.archive.org/web/20150715023254/https://digital.lib.washington.edu/dspace-law/bitstream/handle/1773.1/840/8PacRimLPolyJ515.pdf?sequence=1 |date=2015-07-15 }}</ref> Mortgages are formally foreclosed at auction by a licensed auction specialist.<ref>[https://digital.lib.washington.edu/dspace-law/bitstream/handle/1773.1/840/8PacRimLPolyJ515.pdf?sequence=1 Pacific Rim Law and Policy Journal; vol 8 no. 3 page 568 (b)] {{webarchive|url=https://web.archive.org/web/20150715023254/https://digital.lib.washington.edu/dspace-law/bitstream/handle/1773.1/840/8PacRimLPolyJ515.pdf?sequence=1 |date=2015-07-15 }} -Retrieved 2013-07-21</ref>