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Non-Judicial Foreclosure and How to Avoid Them!Non-judicial foreclosure is a foreclosure that is processed with no court intervention. The requirements for the foreclosure are established by the applicable state statutes. When a property loan default occurs, the homeowner will be sent a default letter (certified mail), or in some states, a Notice of Default will be recorded at about the same time. If the homeowner does not satisfy the default within a certain amount of time (usually sixty days), a Notice of Sale will be sent to the homeowner, recorded at the county recorder's office, posted in public places (to advertise the auction), and published in area legal publications. After the required legal time period has expired, a public or sheriff's auction will be held, with the winning bidder becoming the owner of the property, pending their receipt and recordation of the deed. Auctions of non-judicial foreclosures will generally require cash, or cash equivalent either at the time of the sale, or very shortly afterward. It is very important to note that each non-judicial foreclosure state has different procedures. Some foreclosures do not require a Notice of Default, but start with a Notice of Sale. Others will only require the publication of the Notice of Sale that announces the sale, with no direct owner notification required. You need to know the specific procedure for your state and if you are behind in your payments, check public listings in your local newspapers to ensure your home isn't in foreclosure without your knowledge. Foreclosures can be avoided or stopped with a loss mitigation process if there is enough time between today and the sale date. Only the lender can officially stop a judicial foreclosure proceeding once it's started, but only if they agree to specific terms.
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