Which foreclosure type involves court proceedings to obtain an order for foreclosure?

• A. Judicial foreclosure
• B. Non-judicial foreclosure
• C. Administrative foreclosure
• D. Public foreclosure

Answer: (A)

Judicial foreclosure is the process that requires a court. When a borrower defaults, the lender files a lawsuit, and the court reviews the case. If the court finds in the lender’s favor, it issues a judgment of foreclosure and often orders the sale of the property. The key is that obtaining a court order is central to this type, and the sale is conducted under court supervision.

This stands in contrast to non-judicial foreclosure, which proceeds without a court order using a power-of-sale clause in the security instrument. Administrative foreclosure involves an agency or government process outside the court system, and public foreclosure is not a standard term for mortgage foreclosures.