Final answer:
A judicial foreclosure involves a court-ordered transfer of the mortgaged property to the lender.
Step-by-step explanation:
The correct answer is D) Judicial.
In a judicial foreclosure, the lender initiates a legal process by filing a lawsuit against the borrower. This process involves the court ordering the transfer of the mortgaged property to the lender to satisfy the outstanding debt. The court will typically oversee the entire foreclosure process, ensuring that all legal requirements are met.
In contrast, non-judicial foreclosures (option A) do not require court involvement and are handled outside the court system, usually through a power of sale clause in the mortgage or deed of trust.
Therefore, the type of foreclosure that involves a court-ordered transfer of the mortgaged property to the lender is a judicial foreclosure.