Foreclosure laws are the laws used to govern the lender's right to foreclose. Due to the nature of the agreement that exists between the homeowner and lender in a mortgage, it is important that the process of foreclosure is dealt with in the proper legal manner. In such an agreement, the lender provides full payment for the home in exchange for a promise that the cost will be repaid, with the added costs of interest. Though both parties have a stake in the home, at times, the lender may be able to remove ownership from the homeowner, through a process known as foreclosure. However, this can only be done in a manner that respects the needs of both parties. According to foreclosures laws, there are two primary types of foreclosure - judicial sale and power of sale. By judicial sale, which is considered the more important form, a mortgage holder sells the home under the supervision of a court. This type of sale occurs on a state-by-state basis, taking place at state courts. The majority of the sale is detected to the mortgage holder, whilst the remainder will be used to fulfill liens and lastly, give any profit to the homeowner. By power of sale, the sale is made without the assistance of a court, through an auction or other public method. Not all states allow foreclosure by power of sale, but in those that do, this type is generally regarded as a more efficient than others.