Which type of foreclosure involves a court-ordered transfer of the mortgaged property to the lender?

The correct type of foreclosure that involves a court-ordered transfer of the mortgaged property to the lender is known as strict foreclosure. In strict foreclosure, if the borrower defaults on the mortgage, the court decides that the lender can take possession of the property without a sale. This process can happen after a specific period defined by statute, and it results in a direct transfer of the property from the borrower to the lender without the need for a public auction.

Judicial foreclosure, while also involving the court, typically requires the property to be sold at a public auction, and the proceeds are used to satisfy the debt. Non-judicial foreclosure does not involve the courts at all and allows lenders to foreclose through a defined process without having to file a lawsuit. Administrative takeover is not a standard term used in foreclosure processes and does not represent any established method of foreclosure. Understanding these differences clarifies why strict foreclosure is the answer that focuses on a court-backed transfer directly to the lender.