What is Non-Judicial Foreclosure?

What is Non-Judicial Foreclosure?

Non judicial foreclosures occur when a lender goes through the formal foreclosure process but does not go through the same formal steps with a foreclosure court. These are very different from a judicial foreclosure, and they have their own set of benefits and burdens. As the name implies, non-judicial foreclosures occur without a lawsuit or proceeding through the court system. Instead, the bank simply files a notice with the court stating that the homeowner has defaulted on a mortgage contract. There are no jury trial, no evidence presented to the judge, and no filing of bankruptcy.

non judicial foreclosure

In a judicial foreclosure, the borrowers must first appear before a judge and provide proof of default. If the borrower can not provide this evidence, the judge will issue an order for the lender to pursue the borrower through the court system. The borrower then has a certain amount of time, called a reinstatement period, in which to cure the default and show the courts that he or she is in default of the mortgage contract. If the borrower is unable to cure the default, the lender has the right to then proceed with the foreclosure.

The major difference between a non judicial foreclosure and a judicial foreclosure is that there is no need for a jury trial. There is also very little evidence presented to the judge at trial, which is very different than in a foreclosure case where creditors and borrowers must face off before a judge. It is also much easier for the lender to pursue a non-judicial foreclosure because there is no trial required. Borrowers who are faced with a non-judicial foreclosure in any state have only one option: to fight it in court.

When it comes to avoiding a non-judicial foreclosure, borrowers can do several things. They can try to contact the lender as soon as they become delinquent. They can try to negotiate with the lender before they bring legal proceedings forward. Or they can try to negotiate an alternative agreement with the lender where the borrowers agree to pay a percentage of the loan (otherwise known as an interest rate reduction) or they can deed in lieu of foreclosure.

There are many ways in which borrowers can avoid a foreclosure. However, it is still important that they be aware of the options that they have so that they can act accordingly. A person can go through the foreclosure process without going to court, but this might not be possible for everyone. If this is the case, borrowers need to go to court to be able to make the necessary payments to the lender.

There are two types of nonjudicial foreclosures: judicial and non-judicial. In a judicial foreclosure, the title to the property goes to the judge or the trustee who presides over the foreclosure sale. In a non-judicial foreclosure, the title to the property will be sold to the highest bidder at auction. The most important thing is to find out which type of foreclosure is right for you.