Final answer:
There are two types of foreclosure under a deed of trust: judicial foreclosure and non-judicial foreclosure.
Step-by-step explanation:
Under a deed of trust, there are two types of foreclosure: judicial foreclosure and non-judicial foreclosure.
1. Judicial Foreclosure: In this type of foreclosure, the lender files a lawsuit in court to obtain a judgment allowing them to foreclose on the property. The property is then sold at a public auction to recover the outstanding debt.
2. Non-judicial Foreclosure: Also known as power of sale foreclosure, this process does not involve court intervention. Instead, the lender follows the procedures specified in the deed of trust to sell the property and recover the debt. This usually involves giving notice to the borrower, publishing a notice of sale, and conducting a public auction.