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Nonjudicial foreclosures can be a faster process than judicial foreclosures as they do not involve having to go to court.
Power of Sale. Non-judicial foreclosure auctions are often more expedient, though they may be subject to judicial review to ensure the legality of the proceedings.
Under a judicial foreclosure proceeding, the lender files suit with the court to initiate foreclosuretypically after the borrower misses their third consecutive mortgage payment (also known as going 90 days past due on their loan).
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Judicial Foreclosure This is the most common type of foreclosure. It is allowed in every state and in some states it is required. It involves the sale of the mortgaged property on which the borrower has defaulted on his loan repayment obligations. The sale occurs under judicial supervision.
The right to foreclosure can be exercised by mortgagee only when: The debt amount has become due for payment. There are no contrary conditions in the mortgage deed as to the time fixed for repayment etc. Mortgage money has become due but mortgagor has not got a decree of redemption of the mortgaged property.
Judicial Foreclosure Judicial foreclosures can be further divided into two types: foreclosure by sale, and strict foreclosure. Foreclosure by sale requires the home to be auctioned to the highest bidder with the lender placing the first, or opening, bid. These auctions are commonly referred to as sheriff sales.
When a homeowner stops paying on a loan used to purchase a home, the home is deemed to be in foreclosure. What this ultimately means is that the ownership of the home switches from the homeowner to the bank or lender that provided the loan.
Lender asks court for a judgment on default and to appoint a Referee to decide the amount you owe and write a report. Lender asks court to accept the Referees findings. Judge orders sale of your home. Lender and Referee choose date for auction at the courthouse.