Foreclosure Sale Legal Meaning and Definition

Here is a simplified definition of the legal term Foreclosure Sale.

Foreclosure Sale (noun)

A Foreclosure Sale is a process where a property is sold, typically in a public auction, as a way to pay off a debt. This occurs when a debtor (the person who owes money) is unable to fulfill their financial responsibilities. The property in question usually serves as collateral for the debt, meaning it was previously pledged as a security to ensure payment. The proceeds from the sale are used to repay the owed money.