judicial foreclosure

judicial foreclosure
A foreclosure in which the foreclosing party files a lawsuit in the county where the real estate is located, seeking a court judgment allowing the property to be sold at a foreclosure sale because the owner has defaulted on mortgage payments. A few states use what are called strict foreclosures, which let the judge order ownership of the property transferred to the foreclosing party without a sale. Judicial foreclosures commonly take much longer than nonjudicial ones. Compare: nonjudicial foreclosure
Category: Bankruptcy, Foreclosure & Debt → Foreclosure
Category: Real Estate & Rental Property → Homeowners

Nolo’s Plain-English Law Dictionary. . 2009.

judicial foreclosure
USA
A sale of mortgaged property that is handled as a civil lawsuit and supervised by a court. Proceeds are allocated first to satisfying the mortgage, then distributed to other lien holders and finally split among any remaining borrowers. Every state has its own approach to judicial foreclosure. Certain aspects, including notification requirements, vary considerably among the states.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

judicial foreclosure
n.
   a judgment by a court in favor of foreclosure of a mortgage or deed of trust, which orders that the real property which secured the debt be sold under foreclosure proceedings to pay the debt. The party suing probably has chosen to seek a judicial foreclosure rather than use the foreclosure provisions of the mortgage or deed of trust. Usually this move is made to get a "deficiency judgment" for any amount still owed after the foreclosure sale. In many states (such as California) a foreclosure on the deed of trust limits the recovery to the amount of sale proceeds (sales price minus other debts), so a lawsuit for judicial foreclosure may help the party recover the total money owed to him/her if it was secured by the debtor's real property.

Law dictionary. . 2013.

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