Debt Recovery
Debt recovery is the legal process lenders employ to recoup outstanding mortgage debt following default, including foreclosure, asset seizure, wage garnishment, and pursuit of deficiency judgments.
| Recovery Methods | Approach |
| Property foreclosure | Force sale of collateral |
| Deficiency judgment | Pursue remaining balance |
| Asset seizure | Claim other borrower assets |
| Income attachment | Salary garnishment |
| Settlement negotiation | Reduced payoff amount |
| UAE Legal Framework | Process |
| Court filing | Execution Court jurisdiction |
| Judgment | 2-4 months |
| Property auction | Public sale |
| Proceeds distribution | Debt plus costs deducted |
| Borrower liability | Continues until fully satisfied |
| Cost to Borrower | Charges |
| Outstanding principal | Original debt |
| Accrued interest | Continues during proceedings |
| Legal fees | Attorney and court costs |
| Auction expenses | Marketing and administration |
| Total premium | 20-30% above original debt typical |
Related Terms
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