Foreclosure Laws - Judicial Or Non Judicial Process?

Before negotiating a foreclosure deal, it is important to determine whether it will proceed as a judicial or non-judicial foreclosure. A judicial procedure means that the foreclosure is carried out within the court system. A non-judicial foreclosure means that the negotiations are made outside of court. Whether a foreclosure is judicial or non-judicial depends on the property laws on the books in the state where the home or property is located.

Some states allow both judicial and non-judicial foreclosures. In these states, the manner of foreclosures is based upon the type of document by which the mortgage loan was secured. A deed of trust is usually handled outside of the courts, while a mortgage is processed through the courts. Sometimes, however, mortgage lenders are able to execute non-judicial foreclosures, if there is a clause permitting them to do so in case that a borrower defaults on the loan.

The process of initiating a judicial foreclosure is begun when the mortgage lender sues the homeowner who has defaulted on his or her loan. The most common legal action is a lis pendens, which means "pending lawsuit." If the owner loses, then the property is put up for public auction.

To find out what type of foreclosure process is permitted by law in your state, consult the list below provided by ForeclosureDeals.com. We also recommend that you verify this information with your local state or city government. Find out more about local foreclosure law by clicking on any of the states listed below: