non judicial foreclosure
Non judicial foreclosure is a common practice in nonjudicial states where a home owner, through no court order, has been given possession of the property by the lender without the involvement of a judge or jury. In these states, lenders are not required to go to court to take a property through foreclosure. A quick note of default is all that is needed and the borrower has lost the home. The lender may be able to get away with nonjudicial foreclosure in states where it is widely practiced due to a lack of public interest in the process. In states where non judicial foreclosure is allowed, borrowers must often fight the foreclosure in court to prove the lender owes the debt. With judicial foreclosure, lenders have to use legal procedures to prove the debt. If the borrower contests the foreclosure, he has to do so in court, through a process called foreclosure lawsuit. Although this process can be costly for the lender, it allows the borrower an opportunity to receive a court notice and an opportunity for a hearing before the foreclosure action is taken.
Problems with Non Judicial Foreclosure
The problem with non judicial foreclosure also arises from the lack of due process in the process. Once the loan has been placed into the defaulting account, the borrowers right to redemption is lost. The borrower cannot bring a lawsuit against the lender to force the sale of the property until after all legal procedures have been completed. This can mean that borrowers who are in danger of losing their homes may not receive the opportunity to save them from foreclosure. Because lenders do not have to go to court, this provides borrowers with little chance to fight back against the lender. Because of the inherent problems with the nonjudicial foreclosure process, many states have attempted to reform the laws surrounding foreclosure to make it more consistent with judicial proceedings. Unfortunately, these efforts have had limited success. For example, in Florida, in 1998, a law was passed requiring lenders to give borrowers three days’ notice before taking the house through foreclosure. However, many lenders still violate this requirement, which makes homeowners’ due process rights significantly less protected than they could be under state law. In addition, other statutes surrounding foreclosure often conflict with the Florida law, making it difficult for homeowners to protect their rights.
Because nonjudicial foreclosure lacks due process and the protections of the courts, it provides a very low level of protection for the homeowner. Homeowners can gain a little security when they lose their homes through nonjudicial foreclosure. Even if a lender does decide to proceed with a foreclosure lawsuit against a homeowner, this process will take much longer than a judicial foreclosure. This can mean that homeowners may have to spend many months or even years trying to save their home from foreclosure. Lenders may be able to avoid foreclosure through nonjudicial methods, but this method can take a long time and may not provide any protection for homeowners. As a result, borrowers may lose their homes without any chance to regain them. Lenders rely on borrowers taking care of their responsibilities and completing mortgage payments in a timely manner. Unfortunately, when nonjudicial foreclosure occurs, these obligations are ignored. Instead, homeowners are forced to try to save their homes in the face of extreme foreclosure stress. If you need foreclosure help contact us today.