What is Judicial Foreclosure?

Judicial foreclosure occurs when you default on your mortgage and your lender takes you to court in order to reclaim the home. 

How It Works

Processes for foreclosure vary from state to state and depend on how you purchased the real property. States that use a mortgage will conduct a judicial foreclosure, which will require court action to foreclose on the home, and states that use a deed of trust will in contrast use a non-judicial foreclosure, which will be completed outside of court.

In order to use judicial foreclosure, your lender must prove that you are in default on your mortgage. This generally takes place after your lender has taken steps to resolve the default with you. Once that step fails, they will contact an attorney and pursue court action. The attorney will also try to contact you to resolve the default. After this step fails, the attorney will file a lis pendens (lawsuit pending) against you, the purpose of which is to notify the public of the pending action and prove that you are in default where it will then be approved by the court to initiate the foreclosure on your home.

Once the court has confirmed the default and the foreclosure process begins, an auction will be held for your property to repay your lender.