There are many types of foreclosures adopted around the world, but their real pictorial outlook can be summed by the two most commonly used systems namely, Judicial foreclosure or Power of the law foreclosure, and Non Judicial foreclosure or Power of Sale foreclosure. Each of the two types has its typical characteristics and as both names suggest, the former deals with legal matters from the court while the latter handles legal matters out of court. The density of the default by the mortgagor may determine which type of foreclosure to be used according to the lender or mortgagee. A default occurs when the borrower of a mortgage fails to honor the payment of principal as per the agreement, either in part or in its wholeness. For fear of loosing out on the money given out as loan, the lender uses the property given as a security by the borrower as bait to save the situation.

Normally, the borrower is made aware of the unfolding events in time to make any efforts of redeeming property. The situation is considered equity and in line with the regulations laid by the different States, the court may decide to give the borrower some time to gather resources and pay off their debts. This may be followed by the final okay for the foreclosure process to proceed by the court if the borrower does not satisfy the mortgagee via the court.