Legal definition of judicial foreclosure
Commercial Real Estate Legal Terminology

judicial foreclosure

A judicial foreclosure is a court proceeding that starts when a lender (the bank) files a lawsuit against the defaulted mortgagor to establish the amount of default and the right of a lender to sell the house/apartment and satisfy the outstanding debt. After a lawsuit has been filed, the lender files a "lis pendens" (lawsuit pending notice) with the county clerk's office. Simply speaking, a lis pendens notice let the public know that the owner of this property has an outstanding debt and the title is not clear.

Non-judicial foreclosure: Some states, such as Arizona, Colorado or California, use a Deed of Trust document instead of a Mortgage. The title holder (trustor) deeds the property to a trustee which then holds the title in trust for the lender of the money (beneficiary). The trustor requests the title's return by re-conveyance from the trustee when the loan has been fully paid. If the trustor did not pay in time, the beneficiary can demand that the trustee initiate foreclosure on the property so that the lender can be reimbursed or can obtain title for the property.
Find a legal term by clicking on the first letter of a legal word or phrase:
Book of the Day in our Store
Share it on TwitterFacebook
Introduction to Feminist Legal Theory, Third Edition (Aspen Treatise)Introduction to Feminist Legal Theory, Third Edition (Aspen Treatise)
by Martha E. Chamallas
  • List Price: $94.00
  • Price: $74.69
  • You Save: $19.31 (21%)
from $48.22
Blaming Mothers: American Law and the Risks to Children’s Health (Families, Law, and Society)Blaming Mothers: American Law and the Risks to Children’s Health (Families, Law, and Society)
by Linda C. Fentiman
  • Price: $55.00
from $38.11
James F StanleyAttorney at LawPRACTICE AREA: Criminal Defense, Constitutional Law & Civil Rights, Military Law & Military Benefits
Jonathan P TomesAttorney at LawPRACTICE AREA: Administrative Law, Criminal Defense, Health Care Law, Immigration Law, Military Law & Military Benefits
Jeffrey B LucasAttorney at LawPRACTICE AREA: Administrative Law, Landlord & Tenant Law, Criminal Defense, Military Law & Military Benefits
Flathead BeaconAs a lawyer who practices property rights and real estate law in Kalispell, I was shocked to read a Billings Gazette article that overtly implies wrongdoing by a Flathead County resident who actually did nothing wrong. It didn't take me long to ... more »
Commercial Property Executive“Bridget's legal, corporate, civic and commercial real estate experience presents a rare skill set that is ideally suited to the evolution of our business as we advance our core service lines,” Robert Shibuya, Mohr Partners' chairman & CEO, said in a ... more »
Shawnee News StarReader Question: A real estate agent approached us with a commercial client who would like to buy our property. ... The listing agreement the agent is seeking is an employment contract. ... The law dictates a real estate agent must have a written consent. more »
It's a free online legal dictionary search engine for definitions of legal terminology and legal words, legal abbreviations, and legal jargon you may meet when reading legal acts, law books, documents, legal forms and other legal content