Legal Definitions - statutory foreclosure

Statutory foreclosure is a legal process where a lender can take possession of a property and sell it to recover the money owed on a mortgage or loan. This process is authorized by state law and is also known as power-of-sale foreclosure.

For example, if a homeowner fails to make mortgage payments, the lender can initiate a statutory foreclosure process to recover the debt. The lender can sell the property at a public auction and use the proceeds to pay off the outstanding debt.

Statutory foreclosure is different from judicial foreclosure, which requires the lender to go to court to obtain a foreclosure order. Statutory foreclosure is faster and less expensive for the lender, but it provides fewer protections for the homeowner.