Two methods of foreclosure are what?

• A. In Rem And In Personam
• B. Rem And Personam
• C. In Rem Only
• D. In Personam Only

Answer: (A)

Foreclosure can pursue payment either through the property itself or through the debtor personally. In rem foreclosure targets the property—the court’s action is against the real estate and the lien tied to it. The sale of the property is used to satisfy the debt, and the result is a transfer of title or satisfaction of the lien on that property, with the remedy generally limited to the property itself.

In personam foreclosure goes after the debtor personally. The lender seeks a personal judgment for the amount owed, which means the debtor’s assets beyond the property could be pursued. If the sale doesn’t fully cover the debt, a deficiency judgment may be available in some jurisdictions.

In practice, mortgage foreclosures are typically in rem against the property, but pursuing the debtor personally (in personam) is a possible avenue for obtaining payment beyond the property’s sale.