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 chart below provides an overview of judicial and nonjudicial foreclosure processes, and lists which states commonly use each process.
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Judicial Foreclosure |
Nonjudicial Foreclosure |
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|
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). |
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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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