Decree Of Foreclosure And Sale
What is 'Decree Of Foreclosure And Sale'
A declaration made by a court indicating that a piece of property is to be sold in order to cover outstanding debts. A decree of foreclosure and sale is most frequently used on a mortgaged property, with the proceeds from the sale going to the mortgage lender.
BREAKING DOWN 'Decree Of Foreclosure And Sale'
When the decree is made, the mortgage holder is given notice of the outstanding debt and that the property is to be auctioned off. The amount recovered from the auction goes to cover unpaid interest and principal, as well as legal bills.