decree of foreclosure and sale definition

decree of foreclosure and sale

A court-issued decree indicating that the piece of property held as collateral on a mortgage should be sold in order to pay for the outstanding mortgage debt. For example, if a mortgage holder fails to pay the required mortgage payments for six months the mortgage issuer could have a judge issue a decree of foreclosure and sale. The debtor is given adequate notice of the outstanding debt, and if the decree is issued the property will be auctioned off.

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