Are there different types of foreclosures?
Yes, there are actually 2 different types of foreclosure. In general, foreclosure is the process by which the lien holder (bank, mortgage holder) takes possession of the property used as collateral to satisfy the unpaid debt of the borrower. The foreclosure process is usually triggered by the borrower's failure (or inability) to make timely payments.
The foreclosure process that results from a lawsuit that is carried out in a court of law is called a "judicial foreclosure" and may take months to resolve. If judgment is granted to the plaintiff, a public auction of the property is conducted by the Sheriff or another officer of the court.
A Trustee's Sale or Non-Judicial Foreclosure takes less time and requires less cost for the Lender to take possession and ownership of the property. With this foreclosure process, the Lender is granted the authority to foreclose using the Trustee method, commonly referred to as a "Deed of Trust." This is the common practice here in Virginia.

Posted By: Donna Moyer on Saturday, January 16, 2010