The primary difference between the two classes of foreclosure is the involvement or non-involvement of the court system. In laymen’s term, Judicial Foreclosures are processed through the courts while Non-Judicial Foreclosures are not.
How long a foreclosure takes to complete and the process it follows depends on whether it’s a Judicial or Non-Judicial foreclosure. And which type you have is determined by the state you live in and the mortgage documents you signed.
In a Judicial Foreclosure, the lender files a formal complaint with the court and records a legal notice of “Lis Pendens”. The complaint must state the details of the debt and why the lender should be allowed to foreclose on the property. The Lis Pendens gives public notice that the house is the subject of foreclosure proceedings and implements the legal timeline for foreclosure.
Judicial foreclosures typically take longer than Non-Judicial foreclosures. They can range from 6 months to 2 years and, in most cases, you can stay in your home throughout the process. You can also contest the foreclosure if you believe it’s unfounded or the lender did not provide proper notification or follow state or federal laws. If you believe this is the case, contact an attorney in your area that specializes in foreclosure law and discuss your situation before going to court.
Non-Judicial foreclosures on the other hand typically move much faster than Judicial ones because the courts aren’t involved. They can move as fast as 1 month to 1 year from notice of default to the foreclosure sale. Once you’re sent a notice of default, the only way to delay or stop the process is to file a legal suit and seek an injunction against your lender’s action or to file bankruptcy. As in a Judicial foreclosure, you can usually stay in your home throughout a Non-Judicial foreclosure.
It is terrifying when on this situation and often times confusing since each state is different. However, you should not face this alone. There are some terminologies that a layman may not understand. So, you would need the help of your lender. If this doesn’t work, get a foreclosure expert to help you with the foreclosure. You really need to take a look at your finances to see where your problem lies and be upfront and honest with your lender or with a lawyer for legal purposes.