Definition: A judicial foreclosure is a process that involves transferring title to a property by the court to satisfy a debt. The debt is secured by real property. It differs from a trustee's sale because it is the court that orders the sale.
A mortgagee can request a judicial foreclosure for a variety of reasons, the most common of which is the mortgagor stopped paying the mortgage and the loan went into default. A judicial foreclosure in California is important because that type of a foreclosure transfers certain rights to the mortgagee such as the right in some situations to pursue a deficiency judgment. Judicial foreclosures are rare in California but not in other states.
The time period for a judicial foreclosure ranges from 2 months to almost 12 months, depending on the state. Not every state offers the borrower a right of redemption.
At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.
Common Misspellings: judical foreclosure
