This Article is designed to be of general interest. The specific techniques and information discussed may not apply to you. Before acting on any matter contained herein, you should consult with your personal legal adviser.
Judicial foreclosure has many disadvantages to the lender.
It takes much longer and costs much more than a Trustee's Sale. This makes purchases of such property more uncertain and tends to lower the bidding. The advantage to the lender of Judicial Foreclosure is that a deficiency judgement against the Borrower is allowed. Whether the deficiency judgment is collectable is another problem for the lender. It's fast and inexpensive.