A legal process in which a court supervises the sale of a mortgaged property to recover the unpaid loan amount after a borrower defaults on their mortgage.
Related Real Estate Terminology
- Deed of Trust: A legal document in a real estate transaction that transfers ownership of a property to a third party, the trustee, until a borrower repays their loan.
- Lien: A claim or legal right against assets that are typically used as collateral to satisfy a debt.
- Foreclosure: The process where a lender takes possession of a property due to the owner’s failure to pay the mortgage.
- Equity: The difference between the market value of a property and the amount owed on its mortgage.
- Default: Failure to fulfill a duty or promise or to discharge an obligation; omission or failure to perform any act.
- Auction: A public sale where goods or property are sold to the highest bidder.
- Deficiency Judgment: A judgment against a debtor for the difference between the amount of the debt and the sale price of the property.
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