Chart: Judicial v. Nonjudicial Foreclosures

Judicial Foreclosure

Nonjudicial Foreclosure

States that predominantly use this type of foreclosure

Connecticut, Delaware, District of Columbia, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, New Jersey, New Mexico*, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, Vermont, and Wisconsin

Alabama, Alaska, Arizona, Arkansas, California, Colorado**, District of Columbia (sometimes), Georgia, Hawaii (judicial also common), Idaho, Maryland**, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, North Carolina, Oregon, Rhode Island, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, and Wyoming

Process

Lender files a lawsuit in state court.

Lender follows specific state procedures. Generally, a notice is recorded and mailed to the borrower (though the requirements vary).

Notice provided

When the lender files the complaint in court, the borrower is served notice of the complaint in person, by mail, or by publication. Once the court issues a judgment, the lender may send a notice of sale.

In a nonjudicial foreclosure, the borrower might receive:

• a notice of default followed by a notice of sale

• a combined notice of default and sale

• a notice of sale stating that the property will be sold on a certain date, or

• notice by publication in a newspaper and posting on the property or in a public place.

Officials typically involved

Courts

County recorder

Typical loan document

Mortgage

Deed of Trust with a power of sale clause

Timeline to complete a foreclosure

Months to years

Usually months

Availability of foreclosure mediation

Depends on the state

Depends on the state

Right to cure/reinstate

Depends on the state

Depends on the state

Redemption period following sale

Depends on the state

Depends on the state

Deficiency judgment available

Depends on the state

Depends on the state