Judicial foreclosure
A foreclosure carried out through a court lawsuit, ending in a judgment and a court-ordered sale, often a sheriff sale.
Definition
Judicial foreclosure is a foreclosure carried out through a lawsuit. The lender files a complaint in court, the homeowner is served and can raise defenses, and if the lender wins, the court enters a foreclosure judgment and orders the property sold, often by the sheriff or a court-appointed officer.
Because it runs through the court, judicial foreclosure leaves a public trail: a lis pendens recorded with the county, the case docket, the judgment and the notice of sale. It usually takes longer than non-judicial foreclosure, sometimes well over a year, which gives you more time to reach the owner before the auction. Some states use judicial foreclosure for nearly all home loans; others use it mainly when the mortgage has no power of sale clause or the lender wants a deficiency judgment. In some states the owner keeps a right to redeem for a period after the sale. Rules vary by state; confirm with a local real estate attorney.
Source: consumerfinance.gov
Read the guide
Foreclosure · 12 min read
Pre-Foreclosure: What It Is and How to Reach Owners Before the Auction
What pre-foreclosure means, how the timeline runs in judicial and non-judicial states, where the records are, and how to reach owners the right way.
Foreclosure · 8 min read
Sheriff Sales: How Foreclosure Auctions Work and How to Prepare
How a sheriff sale works: notices, deposits, title and occupancy risks, redemption, postponements, and how to reach the owner before the sale.
Foreclosure · 8 min read
What Is a Lis Pendens? A Plain Guide for Investors and Agents
What a lis pendens is, which lawsuits produce one, how it affects title and buying, how it ends, and how to find one in county records.
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