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Summary:
| Judicial Foreclosure |
Yes |
| Non-Judicial Foreclosure |
Yes |
| Security Instruments |
Deed of Trust; Mortgage |
| Right of Redemption |
No |
| Deficiency Judgment |
Judicial foreclosure only |
| Time Frame |
Usually about 150 days |
In judicial foreclosure, the court will issue a decree of the amount owed and allow a brief period for the borrower to cure the default. If the borrower does not cure the default, a notice of sale is issued by the court.
In non-judicial foreclosure, a power of sale clause is included in the loan document that authorizes the lender, in the event of the borrower’s default, to sell the property and recover the loan balance. The non-judicial foreclosure procedure is carried out as follows:
- The notice of sale must be published weekly for three consecutive weeks in a local newspaper of general circulation and mailed by registered or certified mail at least 120 days before the sale to the borrower at the last known address, and posted on the property at least twenty days before the sale.
- In addition to borrower, lender, and trustee information, the notice must contain a legal description of the property, the nature of the default, and the book and page on which the deed is recorded.
- The sale will be a public auction conducted by the trustee at the courthouse of the county in which the property is located, and must take place between 9 AM and 4 PM. The sale may be postponed for up to fifteen days by posting a notice of postponement at the time and place the sale was originally scheduled.
- No deficiency judgment is available and no redemption period is allowed.
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