Foreclosure is the process the lender uses to take your home away if you do not make your monthly payments. The lender can foreclose for other reasons, but nonpayment is the overwhelming reason.
There are two types of foreclosure. Judicial foreclosure is a court action. It is seldom used compared to what is commonly called nonjudicial foreclosure. Although judicial foreclosure has its place and can be successfully used to obtain deficiency judgments when nonjudicial foreclosure cannot, you as a borrower will most likely never be faced with it.