Judicial vs. Non-Judicial

What's the difference between Judicial and Non-Judicial forclosures?

A non-judicial foreclosure is a procedure that enables the lender to seize the property without going through the legal system. The lender's initial response to a borrower missing a payment is to send a notice of default, which makes the borrower fully aware that they must make their payment if they want to maintain their property. This notice is simultaneously published as a public notice of the borrower's past due status.


This notice of default effectively sets a deadline for the borrower to make the required payments in order to prevent legal action from the lender. In states that allow judicial foreclosure, the lender may proceed with a court action to seize the property if the borrower has not cured the default by the deadline set in the notice of default, or their trustee may sell the house at auction (in the case of a deed of trust in a non-judicial foreclosure state).


In a judicial foreclosure, the process is carried out through the court system, which entails judicial control of the procedure, added expenses, and perhaps a longer time to complete the task. Without having to bring a separate lawsuit, the defaulting borrower is also given the chance to assert any defenses they may have.


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