The #1 thing that most real estate investors and homeowners facing Foreclosures in Temp want to know is: “what is the timeline for foreclosure?” In other words: “how long does it take?” The answer is that the mortgage foreclosure process and timeline varies from state to state. This article provides the information and resources that you will need to find out the foreclosure laws, procedures and timelines for all 50 states.
As mentioned, each state will typically have a different set of rules and a different timeline for foreclosure.
- 20 states utilize only “Judicial” Foreclosures.
- 5 states and the District of Columbia utilize only “Non-Judicial” Foreclosures.
- 25 states utilize both Judicial and Non-Judicial Foreclosures.##
## Of the 25 states utilizing both types of foreclosure, Non-Judicial Foreclosures are more common. In fact, Non-Judicial Foreclosure is the most commonly used form of foreclosure nationally.
I. JUDICIAL vs. NON-JUDICIAL FORECLOSURES:
The primary difference between the two classes of foreclosure is the involvement or non-involvement of the court system. As you might have guessed, Judicial Foreclosures are processed through the courts. Non-Judicial Foreclosures are not.
Regardless of the type used, the timeline for foreclosure is always preceded by a borrower defaulting on their mortgage payments. Most lenders typically won’t threaten homeowners with foreclosure until two or three payments have been missed. However, once the lender concludes that the mortgage is in default and the homeowner is not going to catch up on their overdue payments, a legal filing is made by the lender and the timeline for foreclosure begins.
A. JUDICIAL FORECLOSURES:
In a Judicial Foreclosure, the lender files a formal complaint with the court and records a legal notice of “Lis Pendens”. The complaint must state the details of the debt and why the lender should be allow to foreclose on the property. The Lis Pendens gives public notice that the house is the subject of foreclosure proceedings and implements the legal timeline for foreclosure.
If the court rules that the debt is legitimate and in default, it will send a notice to the homeowner demanding payment of the amount owed (plus penalties and foreclosure costs). The borrower is typically given 30 days to response and satisfy the debt. If they do not, the court will tender a judgement in favor of the lender, instructing that the home will be sell at a “Sheriff’s Sale” auction.
