3 Types of Foreclosure

What are the different types of foreclosure?

Nobody wants to hear the term “foreclosure” in regard to their home or property.

This unfortunate process begins once someone falls behind on their mortgage payments, which pushes them into a “default”. Once a mortgagor enters the stage of default, they begin to accumulate late fees, legal fees, and other charges added to the outstanding debt. The owner of the loan uses state procedures to sell the house in order to repay the debt.

There are three types. Judicial foreclosure, which requires a court order, and non-judicial foreclosure, which does not, and strict foreclosure, which is the least common of the three.


In a judicial foreclosure, the bank must file a lawsuit to get the process started. This is a longer process, usually taking several months or more. The advantage of judicial is that because of the length, this allows you time to search for another place to live and save some money.


Non-judicial foreclosure is not available for traditional mortgages. When this is available, it is heavily regulated, and the lenders must give special notice to the property owner and wait a specified time before auctioning off the property.

This type is cheaper and quicker than judicial, but may only be used when the mortgage has a power-of-sale clause.


Strict foreclosure is less common than non-judicial and judicial, as a lender seeks a court order to gain the property of a homeowner.

Once approved, the homeowner has a set period of time to attempt to correct their debt, but if this is not feasible the property is returned to the lender. While it is not to the advantage of the homeowner, they still have a designated time to pay their debt before losing their home.

At Galaxy Lending Group, our goal is to make homeowners happy and avoid issues with their homes. As a reputable and responsible mortgage lender, Galaxy’s loan specialists offer affordable rates and fees. Contact us today to learn more!