What is judicial foreclosure?

Judicial foreclosure is a type of foreclosure that is conducted through the court system in the state of Texas. In this type of foreclosure, the lender will file a lawsuit against the borrower and ask the court to order the borrower to pay the outstanding debt or surrender the property to the lender. The court will then issue a judgment in favor of the lender, which can result in the property being sold at a public auction to pay off the outstanding debt. The court will also order the borrower to vacate the property within a certain amount of time. The proceeds from the sale of the property will be used to pay off the outstanding loan balance, any interest or fees that are owed, and any costs that the lender incurred in the process of filing the lawsuit and conducting the sale. If there are any remaining funds, they will be given back to the borrower. Judicial foreclosure can be a lengthy and expensive process for the lender, but it is the surest way to get their money back and receive the property back in a timely manner.

Related FAQs

What is foreclosure?
How can I stop a foreclosure sale?
What deeds of trust can a lender use in a foreclosure process?
What do I need to do to stop a foreclosure proceeding?
What options do I have to avoid foreclosure?
What are the foreclosure statutes in my state?
Can I stay in my home if I file for bankruptcy during a foreclosure?
What are the rights of tenants in a foreclosure?
What happens to my home if I file for bankruptcy during a foreclosure?
What is the difference between a foreclosure and a deed in lieu of foreclosure?

What is judicial foreclosure?

Related FAQs

Related Blog Posts