What is foreclosure by judicial sale?

Foreclosure by judicial sale is a process used by banks, mortgage companies, and other financial institutions to recover unpaid balances on a mortgage or loan. It involves adopting a lawsuit in the courts of the District of Columbia to get a judgment against the debtor. If the debtor is unable to pay the balance, or if there is an irregularity in the loan documents, then the court can then order a foreclosure sale of the property. This is the process by which the bank or lender will take possession of the collateral property, such as a house or piece of land, and then sell it in a public auction. The proceeds of the sale are used to pay the outstanding loan balance and any legal fees incurred in the process. The remaining proceeds, if any, are then paid to the former owner of the property. Foreclosure by judicial sale is an important component of Residential Real Estate Law in the District of Columbia and is used often to recover unpaid balances on loans and mortgages.

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What is foreclosure by judicial sale?

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