Judicial Foreclosure

Judicial foreclosure is a legal process used by lenders to reclaim property when a borrower fails to make mortgage payments. In this process, the lender files a lawsuit in court to obtain a judgment allowing them to sell the property. This often involves a public auction where the property is sold to the highest bidder. Unlike non-judicial foreclosure, which doesn't require court involvement, judicial foreclosure provides legal oversight and allows borrowers to contest the foreclosure in court. It ensures that the rights of both the lender and borrower are considered.