Judicial Foreclosure This is the most common type of foreclosure. It's allowed in all states and in some states it's mandatory. It involves the sale of mortgaged property on which the borrower has breached its loan repayment obligations. The sale is carried out under judicial supervision.
A foreclosure is the legal process in which the lender attempts to recover the balance of a loan by forcing the sale of the property used as security for the loan. Foreclosure occurs when the homeowner is unable to make mortgage payments to the lender. The homeowner has a few options to avoid foreclosure. The most common are mortgage modifications and short selling.
