What type of foreclosure process is initiated by the lender filing a lawsuit in court?

The type of foreclosure process initiated by the lender filing a lawsuit in court is known as judicial foreclosure. This process occurs in states that require a court hearing to approve the foreclosure. In a judicial foreclosure, the lender must file a lawsuit and demonstrate to the court that the borrower has defaulted on the loan, thereby allowing the court to issue a judgment that permits the property to be sold to satisfy the debt.

This method provides the borrower with an opportunity to respond to the lawsuit, contest the foreclosure, or seek alternatives to avoid losing their property. Unlike non-judicial and power of sale foreclosures, which do not require court intervention, judicial foreclosure emphasizes legal scrutiny and adherence to state laws regarding real estate and lending, ensuring due process is followed. Summary foreclosure, while also a legal process, typically involves streamlined proceedings and may not apply broadly in the context of standard mortgage default situations.