What is the term that best describes the official process led by a court to sell property to satisfy a debt?

The term that best describes the official process led by a court to sell property to satisfy a debt is known as foreclosure. This process specifically applies to real estate, where a lender seeks to recover the balance of a loan from a borrower who has stopped making payments. Through foreclosure, the lender can reclaim the property and then sell it in order to recoup the outstanding debt.

Foreclosure involves legal proceedings in court, as it is typically necessary for the lender to obtain a judgment for the sale of the property. Once the court orders the foreclosure, the property can be auctioned off, which allows the lender to satisfy the debt owed. This is distinct from execution, which generally refers to enforcing a court judgment through the seizure of a debtor’s property, repossession, which usually pertains to personal property and does not necessarily involve a court process, and eviction, which is the legal removal of a tenant from a rental property due to nonpayment or lease violations.