Foreclosure Laws Understand the differences in foreclosure laws enforced throughout the country. Educate yourself and acknowledge where judicial foreclosures and non-judicial foreclosures are present, as well as the similarities and differences between the two. Being knowledgeable about the specifications and what distinguishes the two from one other may be very beneficial to you. Depending on state foreclosure laws, the foreclosure process typically carried out in one area may be judicial or non-judicial. In the judicial foreclosure process, the lender is required to sue the homeowner so a judge can decide if the home should go into foreclosure. In the non-judicial process, the lender decides if the homeowner has sufficiently defaulted on the loan. A judicial foreclosure occurs when the homeowner defaults on a mortgage, while a non-judicial foreclosure occurs over a defaulted deed of trust. In a judicial foreclosure, a Lis Pendens (LIS) is issued to alert the homeowner of the default and the lender’s intent to sue. In a non-judicial state, this is replaced with a Notice of Default (NOD). If the lender in a judicial foreclosure is able to sufficiently prove the homeowner’s default, the judge will issue a Notice of Foreclosure Sale (NFS), and the home is listed for sale at auction. Meanwhile, if the homeowner in a non-judicial foreclosure cannot alleviate the default, the lender issues a Notice of Trustee Sale (NTS), and the home goes into foreclosure. Twenty
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