Definition of "Judgment Foreclosure"

A court judgment that terminates all interest and rights of a mortgagor (borrower) in the property covered by the mortgage. Such a judgment usually results from the mortgagor defaulting on the mortgage loan, exposing the mortgaged property to the enforceable lien held by the lender (usually a bank). When a judgment foreclosure occurs, the mortgaged property is generally sold under court supervision and the proceeds are used to satisfy the outstanding mortgage debt.