A judicial foreclosure occurs when a mortgage agreement lacks the “power of sale” clause allowing the lender to sell the property to pay the remainder of the debt. Without the power of sale clause, the foreclosure instead takes place through the court system. Judicial foreclosures are typically in place to protect homeowners from lenders who may try to take advantage of them.
Considering a career in real estate? Check out our upcoming pre-licensing courses here: tocrres.com/register