What is judicial foreclosure?

Judicial foreclosure is a type of foreclosure process used in California. It is the method by which a lender can take possession of a mortgaged property when the borrower defaults on the loan. Judicial foreclosure requires the lender to sue the borrower in court and obtain a court judgment allowing the lender to foreclose on the property. In California, judicial foreclosure is the only option available to lenders if the loan document contains a provision requiring the use of judicial foreclosure. Judicial foreclosure is often a longer and more expensive process than non-judicial foreclosure. In California, the judicial foreclosure process begins when the lender files a lawsuit and serves the borrower with a summons and complaint. The borrower has the opportunity to answer the complaint and present any defenses to the court. The court then holds a hearing to decide if the lender has the right to foreclose on the home. If the court finds in favor of the lender, the court will issue a judgment and an Order of Sale. The Order of Sale contains the date, time and location of the auction for the property. The buyer at the auction must pay the lender the amount of the loan and related costs. If no buyer is found, then the house becomes the property of the lender and the borrower loses title to the property.

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What is judicial foreclosure?

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