Vinsko & Associates, P.C.

The Keystone To Any Legal Strategy

What is a judicial foreclosure?

On Behalf of | Oct 18, 2023 | Real Estate Law

Yahoo! reported foreclosures were up 14% from 2022 as of May 2023.

Foreclosures can happen in a variety of ways. Judicial foreclosure is just one process that may occur.


Judicial foreclosure is a court-administered legal proceeding. The process typically begins when a homeowner defaults on their mortgage payments, leading the lender to file a lawsuit against the borrower. The purpose of this lawsuit is to obtain a court order to allow the lender to sell the property in an attempt to recover the unpaid mortgage debt.

Stages of the process

The lender files a lawsuit in the appropriate court seeking a judgment of foreclosure. This lawsuit is a formal legal action that identifies the borrower and details the debt owed.

The homeowner, referred to as the defendant in the lawsuit, receives formal notice. The defendant has the opportunity to respond and defend against the foreclosure, possibly by contesting the validity of the mortgage or raising legal defenses.

The court examines the case, considers any evidence and arguments presented by both parties and renders a judgment. If the court rules in favor of the lender, it grants the lender the right to foreclose on the property.

With the court’s permission, the lender proceeds with the sale of the foreclosed property. This sale can occur through a public auction or private sale.

The sale of the property aims to recoup the unpaid mortgage debt. Once the sale concludes, the lender receives the amount of the remaining mortgage balance, and any excess funds going to other lienholders or the homeowner.

A judicial foreclosure is a legal process that affords the homeowner certain rights and protections. It can be a time-consuming and costly process, both for the lender and the homeowner. In addition, the consequences are significant. If the court rules in favor of the lender, the homeowner loses the property and receives a negative mark on their credit history.