If you get behind on your mortgage payments, you may face foreclosure. There are two types, and they are quite different. In judicial foreclosure the lender must go through the court system to take and sell your home. In nonjudicial foreclosure, the lender does not have to go through the courts but must follow the foreclosure steps outlined by state law. All states allow judicial foreclosure. More than half also allow nonjudicial foreclosure. The type of foreclosure you are facing makes a big difference in what you can expect and the options you may have. It is not uncommon for judicial foreclosure to take much longer than nonjudicial foreclosure.
In a judicial foreclosure, the lender must file a lawsuit asking for court approval to sell your home to repay or partially repay what you owe on your mortgage. You will be served papers and will have a limited amount of time to respond. The type of response you should file will depend on the circumstances in your case. It may be appropriate to file and answer, but in some cases, you should file a motion to dismiss instead or you give up certain legal rights. Your response must be drafted properly.
An experienced foreclosure attorney can determine the type of response you should file and make sure it is drafted and filed properly.
Nonjudicial foreclosures do not go through the courts. Instead the lender is required to follow the steps set out in state law. However, you have the option to file a lawsuit and fight the foreclosure in court as you would a judicial foreclosure.
Depending on the state, nonjudicial foreclosure can happen very quickly and with very little notice. You are not served papers, and some states only require that the lender publish the notice in the newspaper or post the notice on the property or in a public place.
To learn more about judicial vs nonjudicial foreclosure, and your legal options, please talk to an experienced foreclosure attorney today.