Defining Non-Judicial Foreclosure


Foreclosure laws and processes are different in every state. There are two distinct classifications in Fort Myers foreclosures processes:

Judicial foreclosure which is conducted through the court system; and

The non-judicial foreclosure which is done outside the court system.

To which of the two foreclosures is to be used is decided by the state law. Both types of foreclosures are allowed in some states but usually only one is used more than the other. Non-judicial foreclosure is considered in a deed of trust while for judicial foreclosures is the mortgage. The non-judicial type is handled without the intervention of the court but it needs the requirement for the foreclosure established by state laws.

If there is a case of loan default, a default letter will be sent to the homeowner. Most of the states record a Notice of Default at about the same time. If the default has not been attended by the homeowner, a Notice of Sale will be sent. Also it will be posted in public areas, written in the records of the county office, and published in the legal publication of the place.

A public auction will be held after the expiration of the required period of time. Of course, the highest bidder in the auction will become the new owner of the house. Cash is typically needed for Fort Myers foreclosures auctions which are non-judicial.

Always remember that every state has different procedures when dealing with foreclosure under the non-judicial type. Instead of sending a Notice of Default, some states jumps to Notice of Sale. Other states do not notify the homeowner with Notice of Sales and only publishes it in the legal publications. That is why foreclosure property buyersshould know the procedures of their state about foreclosures.

Using“power of sale clause” in the mortgage document is granted by the non-judicial type of foreclosure to the lender. This is to force the sale of the property outside the court system. Because of this, the property sale is already somewhat authorized by the borrower.

Non-judicial foreclosure is always regarded as the one who is faster and cheaper than the other type for the side of the lender. In cases when the lender needs to choose Fort Myers foreclosures, most of the time, it is the non-judicial type that is selected because of the benefits. However, there is also a big advantage in judicial foreclosure which lets the lender ask the court about deficiency judgment against the borrower which makes the borrower responsible for any difference between the debt owed and the sale proceeds.
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