judicial foreclosure

Definition

A foreclosure which results from a court action rather than from the power of sale given to a trustee. Judicial foreclosures occur when a trust deed or mortgage deed does not have a power of sale clause, thus compelling the lender to take the borrower to court. This is in contrast to a non-judicial foreclosure, in which a foreclosure can be completed outside the court system.

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You may find that there has been a judicial foreclosure which will allow you to purchase something for a very good price.

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ACME went bankrupt and it's property is now being liquidated to repay debts under the court's order of judicial foreclosure.

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In Maryland a bank cannot simply foreclose on a property that is late on its mortgage payments. It needs to go to the courts and a judicial foreclosure must be issued.

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