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Non-judicial foreclosure and judicial foreclosure are different in a number of ways. The most important contrast is that while the former can't proceed without going through court, the latter can occur without the court's involvement. Non-judicial foreclosures happen quicker and are harder to challenge. Home owners who are facing a foreclosure need to understand what kind of foreclosure it is before they can attempt to counter it.
Foreclosures and Home Financing
The foreclosure processes vary from state to state, but they mostly depend on what type of home financing is involved. Home financing falls into two types: deeds of trust and mortgages. If the lender used a mortgage to buy property, the disclosure will be judicial. If the lender used the deeds of trust, it will be non-judicial.
Judicial vs Non-Judicial
If the mortgage is judicial, the mortgage lender must prove to the state court that the foreclosure was legal and justified. The home owner has a right to challenge the lender in court, but most home owners either aren't aware of that or feel like they don't stand a chance of winning. Because of this, the court usually decides in lender's favor and foreclosure proceeds without interruption.
If the mortgage is non-judicial, the trustee has the right to begin foreclosure at his or her discretion, without court approval. The home owner still has a right to challenge the foreclosure, but he must make his own case, which is harder to do successfully and more expensive.
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