Non-judicial foreclosure
A foreclosure carried out without a lawsuit, by a trustee using the power of sale clause in a mortgage or deed of trust.
Definition
Non-judicial foreclosure is a foreclosure carried out without a lawsuit. It works when the mortgage or deed of trust contains a power of sale clause, which lets a trustee sell the property at public auction after the borrower defaults and the written notices required by state law are given.
Those steps usually include a recorded notice of default, a waiting period, and a notice of trustee sale that is recorded, mailed, posted and published before the auction. Because no court is involved, non-judicial foreclosure is usually faster and cheaper for the lender than judicial foreclosure, and in many states there is no right of redemption after the sale. The records you can follow are the notices recorded with the county and the sale notices published in local newspapers or posted online by the trustee. Many western and southern states use deeds of trust and non-judicial foreclosure for most home loans. Rules vary by state; confirm with a local real estate attorney.
Source: consumerfinance.gov
Read the guide
Foreclosure · 8 min read
Notice of Default: What It Means and What Happens Next
What a notice of default is, how to read one, the California timeline to a trustee sale, how to find recorded NODs, and how to reach the owner the right way.
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.
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