Foreclosure is a legal procedure instituted by a mortgage holder to cause the sale of property encumbered by a mortgage to satisfy the debt secured by that mortgage.

JUDICIAL FORECLOSURE - involves a civil action filed and carried out in circuit court

  • commenced by  the filing of a foreclosure complaint
  • a commissioner is appointed by the court to conduct the sale, usually by public auction
  • the sale must be confirmed by the court, usually free and clear of encumbrances that were subordinate to the mortgage being foreclosed
  • if the sale proceeds are insufficient to satisfy all of the liens against the property, then unsatisfied lienors may seek a deficiency judgment
  • the court may issue a writ of possession against the owners/tenants
  • the entire process usually takes between 6 to 12 months