Strict foreclosure for consumer goods requires notifying whom?

• A. Debtor only
• B. Debtor and secondary obligor
• C. Debtor, secondary obligor, and perfected creditor
• D. Debtor, random creditors

Answer: (B)

Strict foreclosure lets a creditor keep the collateral in full satisfaction of the debt, instead of selling it. For consumer goods, the secured party must give written notice to the debtor and to any secondary obligor (such as a guarantor or co-signer) so they know what’s happening and have a chance to object or redeem. The notice protects those who are actually liable on the obligation; it isn’t a requirement to notify unrelated or perfected creditors about the foreclosure. If no objection is raised within the allowed period, the foreclosure can proceed. For example, if a consumer buys a car with a loan guaranteed by a co-signer and the debtor defaults, the lender may pursue strict foreclosure but must notify both the debtor and the co-signer.