Which type of foreclosure requires a court proceeding?

Judicial foreclosure is the process that requires a court proceeding. This type of foreclosure is initiated when the lender files a lawsuit against the borrower to obtain a court order allowing the sale of the property to satisfy the debt owed. In a judicial foreclosure, the court evaluates the case to determine if the lender has the right to foreclose and ensures that all legal guidelines are followed.

This process typically involves a timeline where the borrower is notified and may have the opportunity to respond to the lawsuit. If the court rules in favor of the lender, it will issue a judgment that allows the property to be sold at a public auction to recover the debt. The involvement of the court aims to protect the rights of both the lender and the borrower, providing a structured and legally supervised approach to the foreclosure process.