The foreclosure process varies from state to state, and depends primarily on whether the state uses mortgages or deeds of trust for real estate purchases. Generally, states that use mortgages conduct judicial foreclosures; states that use deeds of trust conduct non-judicial foreclosures. The main difference between the two is that the judicial procedure requires court action on a foreclosed home.
To foreclose in accordance with the judicial procedure, a lender must prove that the homeowner is in default. Once the lender has exhausted its attempts to resolve the default with the homeowner, the next step is to contact an attorney to pursue court action. The attorney contacts the homeowner to try to resolve the default. If the homeowner is unable to pay off the default, the attorney files a lawsuit with the court. The lawsuit gives notice to the public that a pending action has been filed against the homeowner. The purpose of the action is to provide evidence of a default and get the court’s approval to initiate foreclosure.
Non-judicial foreclosures are based on deeds of trust that contain the power of sale clause. The clause enables the bank (trustee) to initiate a mortgage foreclosure sale without having to go to court. The bank is typically required to issue a notice of default and notify the homeowner accordingly about the default status. If the homeowner does not respond, the bank then initiates the steps for conducting the mortgage foreclosure sale of the home.
The table below is a basic overview of which states use mortgages (judicial) or deeds of trust (non-judicial) or both. The table also includes estimated foreclosure timelines for each state. Please check with your local county government to verify this information or if you have a questions please fill out the quick contact form 24 / 7 or call 760-881-4335 M-F 9am-7pm PST and we can usually answer any questions you might have.