The Foreclosure Process for Your State

Learn Your State's Procedure

• Related Articles:
  • What is a Foreclosure?
  • Guide to Buying a Foreclosed Home
  • What is a Pre Foreclosure?
  • Fact and Fiction About Foreclosures
  • The Foreclosure Process for Your State
  • Foreclosure: How it Happens and what it Means for Investors
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Foreclosure proceedings vary in a number of ways from state to state. These subtle differences might affect a home buyer’s or investor’s behaviors and are good to understand.

Judicial vs. Non-Judicial Foreclosure

The primary factor that varies from state to state is what each state uses to secure the purchase of property. Some states use mortgages, which in turn follow a judicial foreclosure process. In these proceedings, a lender must prove that the borrower is in default and follows a certain set of steps ultimately ending in court proceedings if the property is not sold in pre-foreclosure. Other states, however, use deeds of trust as the security tool. Deeds of trust result in a non-judicial foreclosure process due to the power of sale clause enabling a trustee to initiate foreclosure without court action. Non-judicial foreclosure resulting from a deed of trust shortens the entire foreclosure timeline significantly. Some states use either one or the other home loan security tool while others utilize both.

Foreclosure Timeline

As aforementioned, the timeline of a foreclosure home varies depending on whether the foreclosure is judicial or non-judicial, as judicial foreclosure is far more time consuming. Beyond that, however, other aspects of the foreclosure process vary in length from state to state. The entire foreclosure process from lapsed payment to sale can last anywhere from several months to over a year

Right of Redemption

States with a Right of Redemption have a period of time following the foreclosure auction known as the Redemption Period in which the former owner may buy back the property from the successful auction bidder. Not all states provide the former home owner with this right, and within the states that do, the length of the redemption period varies according to the individual state foreclosure procedures.

Deficiency Judgments

In the same way that the Right of Redemption works in the foreclosure owner’s favor, a Deficiency Judgment protects the lender. This court order allows a lender to collect any outstanding debt that remains if the security of the loan does not cover its entirety.  The lender seeks a deficiency judgment against the mortgager for any shortage plus foreclosure costs. Not all states allow deficiency judgments.

Let Foreclosure Fetcher help you find a foreclosure in the state of your choice!

Other Articles on Foreclosures

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