What is one condition for strict foreclosure in consumer cases?

Strict foreclosure is a mechanism that allows a secured creditor to take ownership of the collateral without going through a foreclosure sale, thereby simplifying the creditor's ability to recoup its losses. In consumer cases, one key condition for strict foreclosure is that the collateral must not be in the debtor's possession at the time of the proposal.

This condition is significant because if the debtor still possesses the collateral, the creditor may face challenges in taking ownership without consent or may have to go through additional legal proceedings. By ensuring that the collateral is not in the debtor's possession, the creditor can more effectively enforce its rights to reclaim the property and avoid the complexities associated with having to retrieve the collateral from the debtor.

The other conditions listed do not align with the legal requirements or practical considerations of strict foreclosure in consumer transactions.