What Are the Different Types of Foreclosure?
First of all, because foreclosure laws are state-based, the process and legal limitations around foreclosure vary from state to state. Therefore, depending on the state in which your property is located, you may see two types of foreclosure: judicial foreclosure and non-judicial foreclosure.
In a judicial foreclosure state, lenders are required by law to seek foreclosure through the court system. This means that the court controls the foreclosure procedure, including approving the foreclosure case, issuing the notice of sale, and conducting the sale of the property.
Some of the states that predominantly use judicial foreclosure are Connecticut, District of Columbia, Florida, Illinois, Indiana, Louisiana, New Jersey, New York, Ohio, Pennsylvania, Vermont, and Wisconsin.
In a non-judicial foreclosure state, lenders are allowed to seek a foreclosure outside and not under the supervision of the court system. The lenders can issue the notice of sale and conduct the sale themselves. However, non-judicial foreclosure does not mean that the lenders can carry out the foreclosure in whatever way they prefer. The state laws usually impose certain limitations on the foreclosure procedure, such as the amount of time between a notice of sale and the sale date (typically ranging from 3 to 6 months).
The following states predominantly use non-judicial foreclosure: Arizona, Arkansas, California, Colorado, Georgia, Massachusetts, Michigan, Minnesota, Nebraska, Nevada, North Carolina, Oklahoma, Oregon, Rhode Island, Tennessee, Texas, Utah, Virginia, Washington, and Wyoming.
- What Is Foreclosure?
- What Are the Alternatives to a Foreclosure?
- What Are Fannie Mae Foreclosures?
- How Do You Buy a Fannie Mae Foreclosure?
- How Can I Prevent My Loan from Going into Foreclosure?
- What Are the Steps in a Pre-Foreclosure Procedure?
- How Many Late Payments Can I Make Before the Bank Starts Foreclosure?
- What Are the Steps in a Judicial Foreclosure Procedure?
- What Are the Steps in a Non-Judicial Foreclosure Procedure?
- What Is Redemption?
- How Does a Foreclosure Affect My Credit and My Future Options?