Under judicial foreclosure, what must occur for the lender to proceed?

For a lender to proceed under judicial foreclosure, the necessary step involves the lender suing the borrower in court. This process requires the lender to obtain a judgment from the court, as well as a court order allowing the property to be sold. Judicial foreclosure is distinct from non-judicial foreclosure, where a power-of-sale clause in the mortgage allows the lender to sell the property without court intervention.

Key to understanding judicial foreclosure is recognizing its reliance on the judicial system to resolve disputes. The court's involvement provides a legal basis for the foreclosure, ensuring that the borrower's rights are considered and that the process is conducted fairly and transparently.

In other contexts, options referring to power-of-sale clauses or the lender selling the property without court involvement pertain to non-judicial proceedings, which do not involve a court judgment and are thus not applicable in this scenario.