Judicial vs. Non-Judicial Foreclosure

Judicial foreclosure occurs through the court system, requiring a lender to file a lawsuit against a borrower who has defaulted on their mortgage. This process allows the borrower the chance to contest the foreclosure in court. Non-judicial foreclosure, on the other hand, occurs without court involvement, following a pre-established process outlined in the mortgage agreement and state laws, often leading to a quicker resolution. In essence, judicial foreclosure involves legal proceedings, while non-judicial foreclosure is a more streamlined, administrative process. Each method has different legal implications and timelines for both borrowers and lenders.