Which type of foreclosure does not involve a court ruling?

The type of foreclosure that does not require a court ruling is known as power-of-sale foreclosure. In this process, the lender or the mortgage holder has the right to sell the property in order to satisfy the debt without having to go through the court system. This typically occurs when the mortgage contract includes a power-of-sale clause that authorizes the lender to proceed with the sale if the borrower defaults on the loan.

In contrast, judicial foreclosure requires a court proceeding where the lender must file a lawsuit to obtain a court order to sell the property. This can be a lengthy process, as it involves several legal steps, including notifying the borrower and allowing them the opportunity to contest the foreclosure in court.

Bankruptcy foreclosure occurs in the context of a bankruptcy filing, where a debtor seeks to discharge their debts through court proceedings, which can also involve complex legal processes overseen by the court.

Ordered sale foreclosure may imply court involvement as it suggests a judicial mechanism to order the sale of the property.

Power-of-sale foreclosure is thus distinct in that it provides a more streamlined method for lenders to recoup their losses without the delays and complexities associated with court rulings. This is why it is the correct response to the question regarding which type of foreclosure does not