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Investments glossary

Judicial Foreclosure


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Judicial foreclosure refers to foreclosure proceedings on a property in which a mortgage lacks the power of sale clause and so proceeds through the courts. Power of sale is a clause written into a mortgage authorizing the mortgagee to sell the property in the event of default in order to repay the mortgage debt. Power of sale is permitted in many states as part of a lender’s rights to seek a foreclosure.

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