Foreclosure works differently in different states.
If you fail to make your house payments, your lender (or the subsequent loan owner, called an "investor") will likely start a foreclosure on your home and sell it to cover the amount it loaned you. 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, using a process called a nonjudicial foreclosure.
The following chart provides an overview of judicial and nonjudicial foreclosure processes, and lists which states commonly use each process. (To learn what to do—and what not to do—if you're facing a foreclosure in general, see Foreclosure Do's and Don'ts.)
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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, 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 |
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Process |
Lender files a lawsuit in state court. (Learn more about whether your foreclosure will take place in or out of 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. (Read more about How Judicial Foreclosure Works.) |
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. (Read more about How Nonjudicial Foreclosure Works.) |
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Officials typically involved |
Courts |
County recorder |
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Typical loan document |
Mortgage |
|
|
Timeline to complete a foreclosure |
Months to years (Learn more in our article Timeline for a Judicial Foreclosure.) |
Usually months (Learn more in our article Timeline for a Nonjudicial Foreclosure.) |
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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 |
To learn more about the most common type of foreclosure process in your state, check our Summary of State Foreclosure Laws.
*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 some court supervision.
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