judicial foreclosure


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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. (See: foreclosure, mortgage, deed of trust)

References in periodicals archive ?
A court in a judicial foreclosure or in response to a defense asserted by the borrower in a nonjudicial foreclosure has wide latitude to discipline a creditor or servicer that materially violates the Uniform Home Foreclosure Procedures Act, ranging from dismissing or staying the action to imposing appropriate sanctions.
That's one reason that judicial foreclosures, in the Fund's opinion, are more worthy of underwriting than nonjudicial foreclosures.
While the court has inherent equitable power over a judicial foreclosure sale, that power is exercised sparingly and with great caution.
In the bill as drafted, it would be up to the GRADY homeowner to file in circuit court demanding a judicial foreclosure after the lender began a nonjudicial foreclosure.
This is because of the lender has transferee liability for the gains tax outside of a judicial foreclosure proceeding.
NEW YORK -- Alleged procedural defects in the judicial foreclosure process implemented by U.
In Illinois, a judicial foreclosure state, a foreclosure action is sufficient so long as it complies with Illinois Mortgage Foreclosure Law section 5/15-1504.
If they don't agree, then they can proceed with a judicial foreclosure.
The court also noted that judicial foreclosure sales may also be set aside if there was an excusable mistake particularly if such mistake caused the property to bring a much lower price than it otherwise would have.
As the asset is located in New York and is subject to judicial foreclosure laws requiring court action to foreclose on an asset, resolution of this foreclosure filing is not expected to be imminent.
The foreclosure rates in judicial foreclosure states are beginning to pick up and remain higher than in non-judicial states.
We explore why judicial foreclosure states are causing such problems for servicers and examine what a wave of new redefaults of earlier modifications could do to the recovery.

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