Judicial Foreclosure:
Judicial Foreclosure is the most common type of foreclosure in the United States. It is available to lenders in every state and is monitored by the court. In this process the lender files a complaint with the court which states the amount owed on the property and why the default warrants foreclosure. The property owner is then notified of the complaint by mail, direct service, or publication of the notice (usually in the newspaper), and given the opportunity to present their case before the court. If the court finds the debt valid, and in default, it will issue a judgment for the total amount owed including the costs of the foreclosure process. If the property owner is unable to pay their debt, the court will then issue a writ authorizing a sheriff's sale of the property. A sheriff's sale is an open auction which offers the property to the highest bidder. After the sale has taken place, the money from the auction is used to pay back the lender and any other parties that may have a lien on the property. If the proceeds are insufficient to pay all debts, the debtor may still have to pay whatever amount of the mortgage is still unpaid. In the rare case that the sale fetches more than was owed on the property, the borrower will also see some of the profit. Usually foreclosures are handled by state or district courts; however, they can be filed federally also.
Foreclosure by Power of Sale
Also known as "non-judicial" foreclosure, this process is not supervised by the court. Generally, when the borrower defaults on their loan, the lender sends them a default letter. If the property owner cannot produce what is owed on their property they will then receive a Notice of Sale. The Notice of Sale will also be posted in public places (including the newspaper) and recorded at the county recorder's office. If the property owners are still unable to pay within the time period established by the law, the property will be sold by public auction.
Although lenders must adhere to state statutes when pursuing power of sale, this process usually offers them more freedom and a quicker foreclosure process. It must be noted that non-judicial foreclosure laws are different in every state and that the process can vary greatly. For instance, some states do not require the lender to offer the borrower a Notice of Default before delivering them a Notice of Sale. Other states require no direct borrower notification before the sale at all. It would be wise to closely scrutinize the conditions of your mortgage agreement and your state's laws regarding foreclosure.
Strict Foreclosure
Although only available to lenders in a few states (CT, NH, VT), strict foreclosure is perhaps the most quick and straightforward form of foreclosure. In this process, a suit is filed in court against a borrower in default. If the lender is successful, the court will order the debtor to pay the mortgage in full within a specified amount of time. If the borrower fails to do so, the lender gains ownership of the property outright with no obligation to sell it.
Pre-Foreclosure
In many cases, property owners facing foreclosure cannot pay what is owed to their lender(s). However, they can still sell their home to a third party to repay the debt before foreclosure actually occurs. There are many real-estate investors who specialize in buying homes under foreclosure proceedings for below-market prices. If a debtor can find an amicable and trustworthy buyer, this might be a good option. However, most of these people are looking to turn a profit by reselling the property at market value. Many of these buyers are familiar with foreclosure laws and clauses and might be looking to take advantage of a debtor's desperation. Be wary of anyone who offers a quick escape from foreclosure, even if their solution still involves you losing your property. | 
