Judicial or Nonjudicial?

Jurisdiction Customary Security Agreement Customary Foreclosure Procedure
Alabama Mortgage Nonjudicial
Alaska Deed of Trust Nonjudicial
Arizona Deed of Trust Nonjudicial
Arkansas Mortgage Judicial
California Deed of Trust Nonjudicial
Colorado Deed of Trust (Semi-judicial) Public Trustee’s Sale
Connecticut Mortgage Judicial-Strict Foreclosure
Delaware Mortgage Judicial
Dis. of Col. Deed of Trust Nonjudicial
Florida Mortgage Judicial
Georgia Security Deed Nonjudicial
Hawaii Mortgage Judicial
Idaho Mortgage Judicial & Nonjudicial
Illinois Mtg. & D.T. Judicial
Indiana Mortgage Judicial
Iowa Mortgage Judicial
Kansas Mortgage Judicial
Kentucky Mortgage Judicial
Louisiana Mortgage Judicial
Maine Mortgage Judicial (Nonjudicial for Corporate Borrower)
Maryland Deed of Trust Nonjudicial
Massachusetts Mortgage Nonjudicial
Michigan Mortgage Nonjudicial
Minnesota Mortgage Nonjudicial
Mississippi Deed of Trust Nonjudicial
Missouri Deed of Trust Nonjudicial
Montana Instlmnt. Contract Nonjudicial
Nebraska Deed of Trust Mortgage Judicial & Nonjudicial
Nevada Deed of Trust Nonjudicial
New Hampshire Mortgage Nonjudicial
New Jersey Mortgage Judicial
New Mexico Mortgage Judicial
New York Mortgage Judicial
North Carolina Deed of Trust Judicial
North Dakota Mortgage Judicial
Ohio Mortgage Judicial
Oklahoma Mortgage Judicial
Oregon Deed of Trust Nonjudicial
Pennsylvania Mortgage Judicial
Puerto Rico Mortgage Judicial
Rhode Island Mortgage Nonjudicial
South Carolina Mortgage Judicial
South Dakota Mortgage Judicial & Nonjudicial
Tennessee Deed of Trust Nonjudicial
Texas Deed of Trust Nonjudicial
Utah Deed of Trust Nonjudicial
Vermont Mortgage Strict Foreclosure
Virgin Islands Mortgage Judicial
Virginia Deed of Trust Nonjudicial
Washington Deed of Trust Nonjudicial
West Virginia Deed of Trust Nonjudicial
Wisconsin Mortgage Judicial
Wyoming Mtg. & Installment Contracts Judicial

Judicial foreclosures are processed through the courts, beginning with the lender filing a complaint and recording a notice of Lis Pendens. The complaint will state what the debt is, and why the default should allow the lender to foreclose and take the property given as security for the loan. The homeowner will be served notice of the complaint, either by mailing, direct service, or publication of the notice, and will have the opportunity to be heard before the court. If the court finds the debt valid, and in default, it will issue a judgment for the total amount owed, including the costs of the foreclosure process. After the judgment has been entered, a writ will be issued by the court authorizing a sheriff’s sale. The sheriff’s sale is an auction, open to anyone, and is held in a public place, which can range from in front of the courthouse steps, to in front of the property being auctioned. Sheriff’s sales will require either cash to be paid at the time of sale, or a substantial deposit, with the balance paid from later that same day up to 30 days after the sale. Check your local procedures carefully. At the end of the auction, the highest bidder will be the owner of the property, subject to the court’s confirmation of the sale. After the court has confirmed the sale, a sheriff’s deed will be prepared and delivered to the highest bidder, when that deed is recorded, the highest bidder is the owner of the property.

Non-judicial foreclosures are processed without court intervention, with the requirements for the foreclosure established by state statutes. When a loan default occurs, the homeowner will be mailed a default letter, and in many states, a Notice of Default will be recorded at approximately the same time. If the homeowner does not cure the default, a Notice of Sale will be mailed to the homeowner, posted in public places, recorded at the county recorder’s office, and published in area legal publications. After the legally required time period has expired, a public auction will be held, with the highest bidder becoming the owner of the property, subject to their receipt and recordation of the deed. Auctions of non-judicial foreclosures will generally require cash, or cash equivalent either at the sale, or very shortly thereafter.

It is important to note that each non-judicial foreclosure state has different procedures. Some do not require a Notice of Default, but start with a Notice of Sale. Others require only the publication of the Notice of Sale to announce the sale, with no direct owner notification required. You need to know the specific procedure for your state.

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