Court-Ordered Sales……Foreclosures…..Judicial Sales. What are the differences?
Court-Ordered Sales……Foreclosures…..Judicial Sales. What are the differences?
If you're facing financial difficulties and can't make your mortgage payments, you might find yourself facing a foreclosure, judicial sale, or court-ordered sale. But what do these terms mean, and how do they differ from one another? Here's a simple breakdown:
Foreclosure Sale:
A foreclosure sale occurs when you default on your mortgage payments, and the lender takes ownership of your property. Essentially, the lender "forecloses" on your property to recoup the money they're owed. After the foreclosure process is complete, the lender can then sell the property to someone else to pay off the debt.
Judicial Sale:
A judicial sale is similar to a foreclosure sale, but with one key difference: the court is involved. In a judicial sale, the court orders the sale of your property to pay off your mortgage debt. A real estate agent is typically appointed by the court to handle the sale, and the proceeds of the sale are used to pay off the debt.
Court-Ordered Sale:
A court-ordered sale is also similar to a judicial sale, but with one key difference: the court is involved from the beginning. The lender initiates legal action to sell your property, and the court orders the sale of the property to pay off the debt. The court will appoint a real estate agent to handle the sale, and the proceeds are used to pay off the mortgage debt.
In summary, a foreclosure sale occurs when the lender takes ownership of your property due to default on mortgage payments, while a judicial sale and court-ordered sale involve the court ordering the sale of your property to pay off the debt. The key difference between a judicial sale and a court-ordered sale is when the court becomes involved: in a judicial sale, the court becomes involved after the lender initiates legal action, while in a court-ordered sale, the court is involved from the beginning.