The judicial foreclosure is conducted by the court of the county where the property is located. It follows courts rules and established legal procedures. When the foreclosure commences, the pre-foreclosure stage of the loan default ends.

Judicial foreclosures commence when the lender files a lawsuit against the borrower. The lender's lawsuit alleges the borrower is in default on the loan and asks the court for a judgment in the amount due and the return of the property.

For the most part, judicial foreclosures are routine. There is virtually no defense. If the borrower did not make the required payments, the court is going to side with the lender.

After the court rules in favor of the lender (who is the plaintiff in the legal action), the property is scheduled for sale. Local custom and state law determine how the property is sold and how the buyer receives the title for the property.

The defendant can stop the foreclosure by paying off the mortgage and all legal expenses.