What is a judicial sale?

A judicial sale refers specifically to the sale of property that occurs as a result of court proceedings, typically to satisfy a lien or a court judgment. This process involves legal oversight, and it is generally initiated when a creditor seeks to collect a debt secured by a lien on real property and the debtor has defaulted on the obligation. In a judicial sale, the court authorizes the sale, ensuring that the process adheres to legal standards and that all parties' rights are respected.

The sale is often conducted through an auction, with the proceeds used to pay the lienholder. This method provides a legal framework to manage disputes and ensure transparency, making it distinct from voluntary sales or private transactions not overseen by the court. As a result, the option describing a sale that occurs to satisfy a lien through court proceedings accurately captures the essence of a judicial sale.