What is the difference between a judicial and a nonjudicial foreclosure?
After falling behind on their mortgage, a homeowner usually faces the risk of foreclosure. In the event of a foreclosure, the mortgage company or lender has the power to repossess or sell the property in question. While these facts always remain the same in any foreclosure situation, states do vary on the legal process necessary to carry out a foreclosure. The two processes are known as a judicial foreclosure or a non-judicial foreclosure.
The difference between a judicial foreclosure and non-judicial foreclosure can be summed up simply by the definition of the term “judicial”: pertaining to a judgment in court. In a judicial foreclosure, the mortgage lender is required to file a lawsuit against the homeowner in order to move forward with the foreclosure process; where as in a non-judicial foreclosure state, the lender does not need a judgment or judge’s approval to carry out the steps of a foreclosure.
When a mortgage lender decides to move forward with a foreclosure in a judicial foreclosure state, they must begin by filing a foreclosure lawsuit in court. As with most other judicial processes, if the defendant does not respond or contests the foreclosure, then the court will simply grant the foreclosure by default without the need for a hearing or trial. If the homeowner does choose to contest the foreclosure lawsuit, then a hearing is required in order for the court to rule in favor of the foreclosure, or in favor of the homeowner.
In non-judicial foreclosure states, foreclosures have a legal procedure by which mortgage lenders must abide, but because a lawsuit is not required, there is no need for a court ruling in order to carry out a foreclosure. Nevada is a non-judicial foreclosure state. To read more about the state-mandated process of foreclosure in Nevada, click here.
If you are behind on mortgage payments, or have been notified that you may be at risk for foreclosure, contact an experienced foreclosure attorney as early in the process as possible. Our team will guide you through your specific situation and the options available to you. To schedule a consultation, contact us at (702) 998-1188, firstname.lastname@example.org, or schedule a consultation online.