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Summary:
| Judicial Foreclosure |
Yes |
| Non-Judicial Foreclosure |
No, except commercial properties* |
| Security Instruments |
Mortgage |
| Right of Redemption |
Yes |
| Deficiency Judgments |
Yes |
| Time Frame |
Usually 120 days |
*Non-judicial foreclosure is available only for commercial or business properties valued at $500,000 or more.
The judicial foreclosure process requires the lender to sue the borrower in default. The court then issues a decree stating the amount of the borrower's debt and gives the borrower a short time to cure the default. If the borrower fails to pay, the court then issues a notice of sale that must contain a legal description of the property and the date and time of sale. The date must be at least thirty days after the notice of sale is issued.
The property will be sold on that date by the county sheriff's office to the highest bidder.
Right of redemption: The borrower then has, in most cases, nine months to redeem the property by paying the amount of the highest bid at the sale plus costs and interest.
Deficiency judgments: The lender may sue to recover any deficiency balance.
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