Definition - What does Foreclosure Sale mean?
A foreclosure sale is a house or property sale that is affected by the bank or loan company that mortgaged the property. This sale happens when a person defaults on a loan agreement which leads to the property to being taken over by the lender. The lender is forced to sell the property to recoup their financial interests. Thus, it creates a foreclosure sale. It is often the case that less than market value is accepted for properties sold in a foreclosure sale.
Justipedia explains Foreclosure Sale
The difference between the sale price of the property and the loan amount that was defaulted on must be paid by the borrowers. Homes can be bought for much more than they are sold for during foreclosure sales. The original borrower can still owe a lot of money on the property. Foreclosure sales are normally cash only. They are meant to be a quick end to the unwanted property ownership by the lender.
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