A foreclosure is when a lender sells the property securing the mortgage loan at an advertised public auction to recover the amounts owed on the mortgage and any other costs involved in collecting the debt and foreclosing the property. Foreclosure proceedings typically begin after you have made no payments for at least 90 days. If there are no successful third party bidders at the foreclosure auction, title to the property will be transferred to the lender, which may then market and sell the property (known as an REO property) to recover its losses on the loan. There are two types of foreclosure: judicial foreclosure, which is handled as a civil lawsuit and conducted under the supervision of the court; and nonjudicial foreclosure, which does not require formal court proceedings and is overseen by a trustee selected by the lender. Judicial foreclosure can be brought in all states; non-judicial foreclosure can only be pursued where permitted under state law.