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Summary:
| Judicial Foreclosure |
Yes |
| Non-Judicial Foreclosure |
Yes |
| Security Instruments |
Deed of Trust, Mortgage |
| Right of Redemption |
Varies by process |
| Deficiency Judgments |
Yes |
| Time Frame |
Usually 60 days |
Judicial foreclosure: In the absence of a power of sale clause in the loan document that authorizes the lender to sell the property to satisfy the loan balance in the event of default, the lender must sue to obtain an order to foreclose.
Special Procedures: The lender may also simply take possession of the home, and must do so peaceably and in the presence of two witnesses who then give the lender a notarized certificate of possession, or the defaulted borrower can also voluntarily surrender the property to the lender.
Non-judicial foreclosure is the process used when a power of sale exists in the loan document. The notice of sale must be published in a public newspaper weekly for three consecutive weeks beginning at least 21 days before the sale date. The notice of sale must be sent via certified mail to the defaulted borrower at least 20 days prior to the first publication.
The sale is conducted by the county sheriff or his deputy between the hours of 9:00 AM and 5:00 PM at the place designated in the notice of sale. Anyone, including the lender, may bid at the sale.
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