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Summary:
| Judicial Foreclosure |
Yes |
| Non-Judicial Foreclosure |
No, but deed in lieu permitted |
| Security Instruments |
Mortgage |
| Right of Redemption |
No |
| Deficiency Judgments |
No |
| Time Frame |
Usually 150 days |
The judicial foreclosure procedure requires that the lender file a complaint against the defaulted borrower to obtain a decree of sale. The court will give the borrower a period of time to cure the default. If the borrower fails to pay, the court will order the property to be sold.
- The notice of sale must be posted in at least three public places within the county in which the property is located, one of which must be at the county courthouse.
- The notice of sale must also be published twice in a local newspaper, with the first publication at least four weeks before that date of sale.
- If the borrower is in possession of the property, he must be served with a copy of the notice of sale at least twenty days before the scheduled sale date.
- The sale will be a public auction held by the county sheriff between 9:00 AM and 4:00 PM, and sealed bids will be submitted to the sheriff prior to the sale together with any necessary fees and /or payment requested.
- At the auction, the sheriff will open the bids and read them out.
- All unsuccessful bids and payments will be returned.
- The sale may be postponed, but if postponed for more than three days, the new sale date must be publicly announced on the original sale date.
Borrowers may avoid a suit for foreclosure by voluntarily reconveying all rights to the property to the lender with a Disclosure of Notice and Cancellation stating that they are voluntarily giving up their right to occupy or reclaim the property. They must file a joint statement with the lender with the county recorder that they have chosen this method to resolve the issue. By accepting the reconveyance, the lender abandons any right to sue for a deficiency judgement.
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