Here the court concludes that the UCC-1 was sufficient to create a mortgage on a leasehold. Default will entitle the Loveladys to foreclose on the lease (either selling an interest in the lease to another bidder at the foreclosure sale or purchasing the interest in the lease themselves). Recall that the lease runs until 2025.  Depending on the terms of the lease and market rates of rental for comparable property, the lease may be a valuable property.

     Because the document creating the mortgage did not contain a power of sale, the Loveladys could only conduct a judicial foreclosure upon default, a procedure that is considerably more expensive than a non-judicial foreclosure. They may never have to foreclose because the new buyer of the restaurant may make all the payments under the new note. But if they have to foreclose, are the broker, escrow company and escrow officer liable (e.g. in negligence or breach of fiduciary duty) for not having included a power of sale in the documents?  If so, the amount of damages (probably the difference between the cost of a judicial foreclosure and a less expensive non-judicial foreclosure) might not be enough to justify litigation.