Foreclosure Sale

The public sale of a mortgaged property following foreclosure of the loan secured by that property. Depending on the type of foreclosure proceeding, the sale may be administered by the courts (Judicial Foreclosure) or by an appointed trustee (Statutory Foreclosure). Proceeds of the sale are used to satisfy the claims of the mortgagee primarily, with any excess going to the mortgagor.
Example: Anyone may bid on properties sold at a foreclosure sale. As a practical matter, however, most properties are acquired by the lender, often for the amount owed on the foreclosed loan.

The optional right of the mortgagee to resort to the sale of the mortgaged property in the event of default in mortgage payments, and to apply the net proceeds realized from its disposition to the unpaid debt.