Types of Foreclosure

1. Judicial Foreclosure – involves a lawsuit and court proceedings in which the lender sues the borrower for the unpaid balance.

More accurately - Judicial foreclosure is a legal process in which a lender sues the borrower for the unpaid balance. The lender must file a lawsuit and the court will decide if the foreclosure is valid. If the court rules in favor of the lender, the property can then be sold at a public auction to the highest bidder.

2. Non-Judicial Foreclosure – streamlined process in which the lender can sell the property without going through the court

system.

More accurately - Non-judicial foreclosure is a streamlined process in which the lender can sell the property without going through the court system. The lender must follow the procedures outlined in state law, including giving the borrower notice of the sale. The property is then sold at a public auction to the highest bidder.