Judicial and Non-Judicial Foreclosure

Judicial foreclosure involves a court process where the lender files a lawsuit against the borrower to recover the remaining loan balance due to default. This typically results in a court order allowing the sale of the property to pay off the debt. In contrast, non-judicial foreclosure occurs outside the courts, following a process outlined in state law, allowing lenders to sell the property without court intervention. Non-judicial foreclosures are generally quicker and less costly than judicial ones, but consumers may have fewer protections in this method.