Many contracts have a section where you can opt/in or opt-out of Arbitration and Mediation:
If you Opt'ed in, then you will be forced to use it.
If you Opt'ed out, then you can use a Lawyer or Small claims court.
You should be able to get your Deposit bacvk from the Title company, since you are a principal.
All this is irrespective of the question of the "proper procedure while foreclosing":
What does this have to do with you, as long as you will have clear title?
Good luck and may God bless