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Many states require this form of proceeding in some or all cases of foreclosure to guard any fairness the debtor may have in the property, in case the worth of the debt being foreclosed on is considerably lower than the market worth of the actual property; this also discourages a strategic foreclosures by a lender who wants to obtain the property.
The 1990 Regulations on Granting Land Use Rights dealt further with this followed by the City Real Estate Regulation (adopted July 5, 1994), forty the “Security Law of the People’s Republic of China” (adopted June 30, 1995), and then the “Urban Mortgage Measures” (issued May 9, 1997) forty one resulting in land privatization and mortgage lending practices.
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