What type of foreclosure is processed through the court?

Judicial foreclosure is the type of foreclosure that is processed through the court system. In this process, the lender must file a lawsuit against the borrower to obtain a court order allowing them to foreclose on the property due to the borrower's default on their mortgage obligations. This court involvement means that the foreclosure process is subject to judicial oversight, allowing the borrower the opportunity to present their case and potentially contest the foreclosure in court.

The judicial process typically results in a public auction of the property, where the lender can recover the amount owed on the mortgage. This type of foreclosure is common in states that require judicial review for property seizures, ensuring a legally enforced procedure that emphasizes the rights of both the lender and the borrower.

In contrast, non-judicial foreclosure does not go through the court system, allowing lenders to take possession of the property without a lawsuit. Automatic foreclosure is not a recognized term within real estate practices, and tax foreclosure involves a specific process for properties with unpaid taxes, distinct from the typical mortgage foreclosure process.