Which type of foreclosure is processed through the court system?

Judicial foreclosure is processed through the court system, which involves a legal proceeding overseen by a judge. In this type of foreclosure, the lender must file a lawsuit against the borrower to obtain a court order permitting the sale of the property to satisfy the outstanding loan obligation. This process offers the borrower an opportunity to contest the foreclosure in court, allowing for judicial review of the situation.

The judicial foreclosure typically proceeds with a series of legal steps that ensure the borrower's rights are acknowledged, including the right to redeem the property during a specified period before the sale, depending on state laws. This contrasts with non-judicial foreclosure, which bypasses court intervention and follows statutory procedures specific to the state, often leading to a quicker resolution. The other options, administrative foreclosure and repurchase foreclosure, are not standard terms typically associated with the traditional foreclosure processes recognized in real estate law.