A secured creditor who removes its collateral from a property that is about to be foreclosed upon must pay the foreclosing creditor for the loss of value to the property that results from the removal.

Question

Quizplus · Accepted Answer

A secured creditor is generally entitled to remove its collateral without compensating the foreclosing creditor, as long as the removal does not violate any agreement or law. The foreclosing creditor's interest is in the remaining property, not the collateral itself.

A Secured Creditor Who Removes Its Collateral from a Property