What action must a lender take to pursue a judicial foreclosure?

To pursue a judicial foreclosure, a lender must first file a lawsuit against the borrower. This legal process initiates court proceedings, allowing the lender to seek a judgment for the amount owed on the mortgage, after which they can proceed with foreclosing on the property if they win the case. Judicial foreclosure is a court-supervised process, and filing a lawsuit is a fundamental step in this process, as it formally seeks the court's intervention to resolve the matter.

The other options involve processes that either do not relate directly to foreclosure or represent alternative actions. For instance, providing a loan modification option is a way for lenders to help borrowers retain ownership by making their payments more manageable, rather than pursuing foreclosure. Notifying the borrower of approval does not pertain to the foreclosure process itself. Selling the property at a public auction occurs after the judicial process has concluded and is part of the execution of the foreclosure, rather than the initial step to initiate it.