What Is Judicial Foreclosure?

Full Video Transcript

What is judicial foreclosure? All states allow this type of foreclosure, and some require it. In a judicial foreclosure, the lender files a type of lawsuit in order to foreclose on the property. The homeowner will receive a notice in the mail demanding payment. The homeowner then has only 30 days to respond with a payment in order to avoid foreclosure. If a payment is not made after a certain time period, the mortgaged property then proceeds into foreclosure and is sold at a public auction to the highest bidder, carried out by a local court or sheriff’s office.