Foreclosure by Sale Law and Legal Definition

Foreclosure by sale is a summary method of foreclosure of a mortgage or deed of trust by sale of the mortgaged premises under a power of sale contained in the mortgage or deed of trust, or even in a separate instrument.

In a foreclosure by action and sale a suit is filed to obtain a decree of foreclosure and a sale of the mortgaged premises in accordance with that decree, the proceeds to be applied, first to the payment of the costs of suit, the mortgage debt, and interest thereon, second to junior encumbrancers, and third to the owner of the premises.