|
Summary:
| Judicial Foreclosure |
Yes |
| Non-Judicial Foreclosure |
Yes |
| Security Instruments |
Deed of Trust, Mortgage |
| Right of Redemption |
No |
| Deficiency Judgments |
No |
| Time Frame |
Usually 60 days |
Judicial foreclosure is used when no power of sale clause exists in the loan document. The lender must sue the defaulted borrower in court to obtain an order to foreclose.
Non-judicial foreclosure is the process used when a power of sale clause that authorizes the lender to sell the property to recover the balance due on the loan in the event of the borrowers’ default is included in the loan document. If the clause specifies the time, place and terms of sale, then that procedure must be followed. If not, the process is as follows:
- The lender’s trustee must record with the county clerk the notice of sale, and publish the notice in a newspaper of general circulation weekly for three consecutive weeks prior to the date of sale, and post the notice on the courthouse door.
- The borrower may stop the process at any time prior to the sale by curing the default and paying accrued costs.
- The sale shall be a public auction either in the county in which the property is located, or in the county in which the borrower resides.
- Owners who lose their property in a non-judicial foreclosure have no right of redemption. Deficiency judgments are not permitted.
Links:
|
