A judicial foreclosure is sometimes referred to as a standard foreclosure. In a judicial foreclosure, a lawsuit is filed and a judge orders the appointment of a commissioner and the sale of the property at a public auction. The commissioner handles the details of the public auction. Bidders are normally required to put a deposit down unless the bidder is one of the mortgagees or lienholders. The sale and the proposed purchase price must be approved by the judge to make sure it is adequate. The proceeds are used to pay the commissioner’s fees and cost, real property taxes, the money owed on the property and any liens and security interests. If there are any funds left, it is paid to the former owner of the property. If there is insufficient funds to pay everyone, the judge can enter a deficency judgment for the difference.

One alternative to a judicial foreclosure is a non-judicial foreclosure.