Define: Foreclosure Sale

Foreclosure Sale
Foreclosure Sale
Quick Summary of Foreclosure Sale

Foreclosure sale refers to the auction of a property that has been seized by a lender or creditor due to the owner’s failure to make mortgage payments or fulfil other financial obligations. It is typically conducted as part of the foreclosure process to recover the outstanding debt owed by the property owner. The sale is usually open to the public, and interested buyers can bid on the property. The proceeds from the sale are used to pay off the mortgage debt, along with any associated fees and expenses. If the sale generates more funds than needed to satisfy the debt, the surplus may be returned to the property owner or distributed according to applicable laws. If the sale proceeds are insufficient to cover the debt, the lender may pursue other legal remedies to recover the remaining balance.

What is the dictionary definition of Foreclosure Sale?
Dictionary Definition of Foreclosure Sale
n. the actual forced sale of real property at a public auction (often on the courthouse steps following public notice posted at the courthouse and published in a local newspaper) after foreclosure on that property as security under a mortgage or deed of trust for a loan that is substantially delinquent. The lender who has not been paid may bid for the property, using his/her/its own unpaid note toward payment, which can result in a bargain purchase.
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This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March, 2024.

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