What does that mean? In a nutshell, it just means that the financial institution who loaned the money must go through the courts to get their money back.
By using the judicial branch of the state government as an arbitrator, both the lending institution and the homeowner will receive a relatively fair treatment of the process. If you talk to landowners, they might disagree, but initial lending contracts often have their own loopholes which do favor the banks. This is your chance to extract the value taken from them in overleveraged housing deals that have gone bad!
That doesn’t mean, of course, that you can’t enter the fray and buy a foreclosed property cheaply. All it means is by sending the process of foreclosure to the courts, a sometimes harrowing process for each party involved, will become less so.