West Virginia Mortgage Law Practice Test 2025 - Free Mortgage Law Practice Questions and Study Guide

Judicial foreclosure requires court proceedings, which means that the lender must file a lawsuit to initiate the foreclosure process. This involves going to court, where the borrower has the opportunity to respond and potentially fight against the foreclosure. The court will oversee the entire process, and once the foreclosure is approved, the property can be sold at a public auction.

In contrast, non-judicial foreclosure does not require any court intervention. This process is typically governed by a power-of-sale clause in the mortgage or deed of trust. The lender can proceed with the foreclosure without taking the matter to court, following a specified set of procedures. This alternative can result in a faster resolution compared to judicial foreclosure because it bypasses the lengthy court process.

Non-judicial foreclosure is often favored by lenders for its efficiency and lower costs. It's important for borrowers to understand the differences because their rights and options can vary significantly depending on the type of foreclosure being pursued.