Difference Between Judicial and Non Judicial Foreclosure
Most of the homeowners are not aware of the time period than is been taken to foreclose the property. Different states would have different time period for foreclosure to take place.
If you want to gain information about the foreclosure then you need to know the foreclosure laws of your country. Most of the states follow the laws that are formed by judicial foreclosure. Very few states follow non judicial foreclosure. There are some states that would take the benefits of both the procedures.
Difference between Judicial Foreclosure and Non Judicial Foreclosure
The major difference between judicial and non judicial foreclosure is that in judicial foreclosure the court would take the decision about the foreclosure property where as in non judicial foreclosure there is a mutual understanding between the lender and the borrower. Both the methods would take their own time to solve the dispute.
If your lender understands then he/she would not foreclosure your property if you miss two to three payments. If your lender is not able to understand your problem then your lender would try to sell your property as soon as possible. Lender would not delay in selling your property and get back the amount that the lender has invested in your property. Foreclosure takes places when the borrower frequently misses the payments. The following are the different types of foreclosure procedure:
If judicial foreclosure you need to file your case in the court. Then the judge would take proper decision about your property. This procedure is known as lis pendens. Your complain needs to have each and every details of your case. If you miss a single detail then you need to get ready for foreclosure. In lis pendin the court would issue a legal notice about the foreclosure procedure. The notices would be issue in different new papers. Your court would only decide the time period for foreclosure procedure.
The court finds that the owner is not able to pay the loan on time then the court would issue a legal notice against the borrower. The borrower would be given 30 days to respond to the legal notice. If you are not able to respond within this time period then your property would be send for sheriff sale. Thus, during this time period you need to find the ways that can to use to avoid the procedure of foreclosure.
Non Judicial Foreclosure
When the court is not involved in the foreclosure procedure then it is known as non judicial foreclosure. Non judicial foreclosure is also called as “power of sale”.
This procedure takes place outside the court. In this procedure the solution is reached with the aid of mutual understanding between the two parties. You can go for this procedure only when your agreement includes the clause known as power of sale. According to this clause the lender has the right to sell your property and get back the amount the lender has invested in your property. Non judicial foreclosure is cheaper then judicial foreclosure.