Different States - Different Foreclosure Procedures
The foreclosure laws varies from state to state and it lays down terms and conditions that apply for foreclosure processes in a particular state. The process of foreclosure can be initiated through a judicial system (court) or non-judicially. There are some states which allow both judicial and non-judicial foreclosure processes while other states allow either of them.
In states where the foreclosure laws allow both types of foreclosure processes, a mortgage loan document is the determining factor. Based on the clauses mentioned in the mortgage loan document, the foreclosure process is followed either judicially or non-judicially. If there's a deed of trust involved then the foreclosure process will be non-judicial but if there is a mortgage then it will be judicial. There are some mortgages that have a clause that allows the lender to sell the foreclosed property non-judicially.
According to foreclosure laws, a judicial foreclosure can take place only when the lender files the required court action against the homeowner who has defaulted on the loan. This form of filing is known as a lis pendens or pending lawsuit. If the owner looses the lawsuit then the court will initiate the process of public auction to sell the homeowners' property.
According to foreclosure laws, in the case of a non-judicial foreclosure, the trustee whose name is on the deed of trust needs to file a public notice of default. The recording or filing of this notice initiates the non-judicial foreclosure process. In such a case there is a grace period and if the homeowner is unable to pay off the loan within the grace period then the trustee will go ahead and schedule a public auction of the homeowner's property.
We are providing below a list of all the states that allow judicial and non-judicial foreclosure.
| State | Judicial | Non-Judicial | State | Judicial | Non-Judicial |
| Alabama | • | • | Montana | • | |
| Alaska | • | Nebraska | • | ||
| Arizona | • | • | Nevada | • | |
| Arkansas | • | New Hampshire | • | ||
| California | • | New Jersey | • | ||
| Colorado | • | New Mexico | • | ||
| Connecticut | • | New York | • | ||
| Delaware | • | North Carolina | • | ||
| District of Columbia | • | North Dakota | • | ||
| Florida | • | Ohio | • | ||
| Georgia | • | Oklahoma | • | ||
| Hawaii | • | Oregon | • | ||
| Idaho | • | Pennsylvania | • | ||
| Illinois | • | Rhode Island | • | ||
| Indiana | • | South Carolina | • | ||
| Iowa | • | South Dakota | • | • | |
| Kansas | • | Tennessee | • | ||
| Kentucky | • | Texas | • | ||
| Lousiana | • | Utah | • | ||
| Maine | • | Vermont | • | ||
| Maryland | • | • | Virginia | • | |
| Massachusetts | • | Washington | • | • | |
| Michigan | • | • | West Virginia | • | |
| Minnesota | • | Wisconsin | • | ||
| Mississippi | • | Wyoming | • | ||
| Missouri | • |
