What is the outcome of a judicial sale?

A judicial sale refers to the court-ordered sale of a property, typically occurring as a result of a mortgage foreclosure process or in the context of settling debts. In this situation, the court facilitates the sale to ensure that it is conducted fairly and legally, safeguarding the rights of all parties involved, including the lender and the borrower.

This process differs from private sales or voluntary transfers, where the negotiation and undertaking of sale occur outside of court supervision. Moreover, while auctions may be part of a judicial sale process, the defining characteristic is that the sale is mandated by a court rather than a straightforward auction to the highest bidder without such oversight. Therefore, the essence of a judicial sale is its grounding in legal authority, making it distinctly significant in property law and foreclosure proceedings.