What is the difference between judicial foreclosure and Non Judicial foreclosure?

Judicial foreclosure is initiated when a lender files a complaint in the applicable court. The complaint states the debt and details reasons why the lender should be allowed to foreclose on the property given as security for the loan.  If the lender secures a favorable judgment, the court issues a writ authorizing a sheriff’s auction. These are generally found in states that use mortgages for the purchase of real property.

A non-judicial foreclosure occurs without the court’s intervention, in compliance with state statute or a clause within the purchase-sale contract of the real property at issue. These occur in states that use deeds of trust with a power of sale clause.

Many states allow for both judicial and non-judicial foreclosures but it is essential to know what laws are applicable in your state. If you are facing foreclosure, it is important that you contact an attorney so you can best be appraised of your rights and options. For more on foreclosures and on obtaining legal counsel please see the link below.