Recent State Foreclosure Laws

            States that use deed of trust to purchase property will typically conduct non-judicial foreclosures. On the other hands, states that use mortgage as an evidence of purchasing will usually conduct judicial foreclosure. The difference is that judicial foreclosures will require a court action on a foreclosed property, but the non-judicial foreclosures do not.

            In a judicial system, a lender or creditor must prove that borrower is in default, and lender has tried to resolve the matter with the borrower. Then the lender is taking the matter to the court by contacting a lawyer. The lawyer will file a lawsuit(a lis pendes), if the borrower can not pay off the default.  The purpose of a lis pendes is to provide evidence of a loan default and get the court’s approve to initiate foreclosure.

            In non-judicial foreclosures, however, the laws are based on the deeds of trust which have the power of sale clause which allows lender to initiate foreclosure process without going to court. Nevertheless, a lender is still required to give a notice of default to the borrower. If the borrower does not respond, then the lender can proceed with foreclosure process.

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• Everything You Need To Know About Foreclosure Process
• Filing Bankruptcy To Keep From Foreclosure
• Buying And Flipping Foreclosures
• Difference Between Bankruptcy And Foreclosure
• Government Loans To Help Stop Foreclosures
• Process For Buying Foreclosed Homes
• Timeline For Foreclosure
• Recent State Foreclosure Laws