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.
Foreclosure is not inevitable. Depending on your circumstances, there are a number of alternatives out there, and it is very possible that there is a solution for your scenario that will not take such an extreme toll on your credit.
If you are interested in further exploring and evaluating your options, please let us know and we'd be happy to connect you with an agent who can help you.
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