Define: Judicial Foreclosure

UK Accounting Glossary

Definition: Judicial Foreclosure



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Full Definition of Judicial Foreclosure


A judicial foreclosure occurs when a lender involves the courts to get a foreclosure on a mortgage or deed of trust. Following a judicial foreclosure is the forced sale or auction of the property so that the debt may be repaid. A judicial foreclosure occurs in lieu of a power of sale: if the deed is lacking a power of sale clause, the lender has no choice but to take the borrower to court and invoke a judicial foreclosure. Once the court has ordered a judicial foreclosure, the value of the property is appraised, and the court determines an upset price which all bids must exceed. Often, a judicial foreclosure is used to get a “deficiency judgment” for any remaining amount after a non-judicial foreclosure. Depending on the state, a judicial foreclosure can be a faster and less expensive method of foreclosure than any alternative method.


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Definition Sources


Definitions for Judicial Foreclosure are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th February 2020.