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Summary:
| Judicial Foreclosure |
Yes |
| Non-Judicial Foreclosure |
Yes |
| Security Instruments |
Deed of Trust, Mortgage |
| Right of Redemption |
No |
| Deficiency Judgments |
Yes |
| Time Frame |
Usually 60 days |
Judicial foreclosure requires the lender to sue the borrower and obtain a court order to foreclose. The court then sets a time period within which the borrower may cure the default. If the borrower fails to pay, the property is ordered to be sold. The court can also order that the property be foreclosed by possession by the lender.
Non-judicial foreclosure is used when a power of sale clause authorizing the lender to sell the property to satisfy the loan balance exists in the loan document. The notice of sale must be mailed to the borrower via certified or registered mail at least 25 days prior to the date of sale, and be published weekly in a newspaper of general circulation for three consecutive weeks beginning at least 21 days prior to the date of sale.
The borrower has no right of redemption.
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