Foreclosure Defense Law

Foreclosure Defense Law

Foreclosure defense law may vary widely from state to state depending upon how the state chooses to process foreclosures. Some states prefer judicial foreclosures while other states prefer non-judicial foreclosure. Some states may allow both judicial and non-judicial foreclosures depending upon the terms outlined in the mortgage agreement.

In foreclosure defense law a judicial foreclosure typically occurs when the foreclosure must be processed within the courts. With a judicial foreclosure, the court may choose deliver a court order authorizing sheriff sale. A non-judicial foreclosure typically occurs when the foreclosure is processed outside of the courts. With a non-judicial foreclosure, the home may be sold at a public auction after a trustee has issued a Notice of Trustee Sale.

Homeowners should consider learning as much as possible about the foreclosure defense laws in their area in order to have the best opportunity at avoiding foreclosure.

Foreclosure Defense Law – Judicial Foreclosure State

When learning about foreclosure defense law in judicial foreclosure states, it can be smart to first familiarize yourself with common terms used judicial foreclosure states. Common terms homeowners may encounter when dealing with a judicial foreclosure may include:

  • Notice of Default – A notice of default is commonly used in both judicial and non-judicial foreclosures. In foreclosure defense law, the notice of default is typically the first noticed a borrower may receive notifying them of a mortgage delinquency and potentially imminent start to the foreclosure process.
  • Notice of Sale – A notice of sale is used mostly in judicial foreclosure states. The notice of sale often contains the location, time and date of a foreclosure auction and may be sent out after the court orders a foreclosure sale date.
  • Sheriff Sale – A sheriff sale is used mostly in judicial foreclosure states. A sheriff sale is typically a foreclosure auction overseen by the county sheriff according to the order of the court.

Foreclosure Defense Law – Non-judicial Foreclosure State

When learning about foreclosure defense law in judicial foreclosure states, it can also be beneficial to learn about the common terms used in a non-judicial foreclosure state. Common terms homeowners may encounter when dealing with a non-judicial foreclosure may include:

  • Trustee – In foreclosure defense law, a trustee is typically an individual designated in the mortgage agreement who is responsible for collecting the unpaid balance on a defaulted mortgage loan.
  • Notice of Trustee Sale – A notice of trustee sale may be sent out after a homeowner has defaulted on one or more mortgage payments in a non-judicial foreclosure state. A notice of trustee sale commonly outlines the time, date and location of a trustee sale.
  • Trustee Sale – A trustee sale is typically a public auction of a foreclosed home overseen by a trustee in a non-judicial foreclosure states. They often work in a very similar way as a sheriff sale, but use a trustee to oversee the sale as opposed to a county sheriff.