Chart: Judicial v. Nonjudicial Foreclosures

In this handy chart, learn about the differences and similarities between judicial and nonjudicial foreclosures.

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If you fail to make your house payments, your lender will foreclose on your home and sell it to cover the debt. Foreclosure works differently in different states. In some states, the lender will use a judicial procedure while in others it can foreclose without going through the court system (called a nonjudicial foreclosure).

(Learn more about foreclosure in our Foreclosure Center.)

Take a look at the following chart to learn the main differences between judicial and nonjudicial foreclosures.

 

Judicial Foreclosure

Nonjudicial Foreclosure

States that predominantly use this type of foreclosure

Connecticut, Delaware, 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, Georgia, 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.

(Learn more about whether your foreclosure will take place in our out of court.)

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

Notice provided

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

Read more about How Judicial Foreclosure Works.

If you’re in a nonjudicial foreclosure state, you may 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.

Read more about How Nonjudicial Foreclosure Works.

Officials involved

Courts

County recorder

Typical loan document

Mortgage

Deed of Trust with a power of sale clause

(Learn more about power of sale clauses in What is a Power of Sale Foreclosure?)

Timeline to complete a foreclosure

Months to years

(Learn more in our article Timeline for a Judicial Foreclosure.)

Months

(Learn more in our article Timeline for a Nonjudicial Foreclosure.)

Availability of foreclosure mediation

Depends on the state

(Find out if your state has a foreclosure mediation program.)

Depends on the state

 

Right to cure/reinstate

Depends on the state

(Learn more about curing a default and reinstating a loan.)

Depends on the state

Redemption period following sale

Depends on the state

(Learn more about redemption periods.)

Depends on the state

Deficiency judgment available

Depends on the state

(Learn more aboutdeficiency judgments.)

Depends on the state

*New Mexico’s Deed of Trust Act was amended in 2006 to remove the prohibition on powers of sale in residential deeds of trust. As a result, a nonjudicial foreclosure process may be used for post-2006 residential loans, though the practice is not widespread at this time.

**Nonjudicial with court supervision.

To find out if your state uses a judicial or nonjudicial foreclosure process, check our Summary of State Foreclosure Laws.

To learn more about this topic, visit Nolo's Judicial v. Nonjudicial Foreclosure page.

by: , Contributing Editor

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