Judicial/ Non-Judicial Foreclosure: Only Judicial Foreclosure
Right of Redemption / Deficiency Judgment: Yes/ Yes
Timeline: 150 Days, Can vary depending on individual cases
Deed of Trust / Mortgage as Security Instruments: Mortgage
Judicial Foreclosure process:
In the Judicial Foreclosure process, the lender needs to file a lawsuit against the borrower if the latter happens to default on the mortgage loan. The court then decides the amount that should be paid by the borrower (including interest costs) and gives some time for the borrower to do so. If the borrower does not pay up within the specified time, the court advertises the property for sale as per the foreclosure procedures.
Before the foreclosure process begins, the value of the property needs to be appraised by three individual/ neutral appraisers and the reports offered by them needs to be filed with the clerk of the court. The property cannot be offered for sale for a value that is less than two-thirds of the appraised value.
A notice of foreclosure is then prepared and it is advertised in a local newspaper that is present in the county where the property is located. This ad should be carried on at least one day every week for three consecutive weeks before the foreclosure sale date.
During the sale date mentioned in the notice, the property is auctioned and is sold off to the highest bidder. The foreclosure sale generally takes place at the courthouse and is conducted by the Sheriff.
The borrower can re-claim their property using their right of redemption by paying up all their dues (along with interest costs) till a certain period of time. The lender can also file for a deficiency judgment in case the value offered by the highest bidder is lower than the total amount due to them.