When a homeowner cannot make their monthly house payments, their property can go into foreclosure. This process lets banks and other institutions recover the balance of those loans by selling or repossessing the property. If a lender is moving forward with a foreclosure on your home, there are two ways they can do so, which are a Judicial and Non-Judicial foreclosure.  Which avenue is often dependent upon the state.

In simple terms, a judicial foreclosure means that your lender will go get a judgment from the court to foreclose on your home. A non-judicial foreclosure would mean that they can avoid the courts altogether. Here is a brief guide to learn the critical differences between a judicial foreclosure and a non-judicial foreclosure.

Important Distinctions Between the Two

During judicial foreclosures, lenders will present  a case in court for a judge to review. Evidence can be submitted by both the property owner and bank. The court will then decide whether a proper hearing is needed to check whether the homeowner has defaulted on their loan to warrant a foreclosure.

However, if neither party can reach an agreement and the court sides with your lender, they will make a final judgment in favor of the foreclosure. Then the property will be up for sale again, and you will need to take care of any remaining loans that are not covered by the deal. In addition the bank/lender can receive all attorney fees and costs and/or go after the homeowner personally.

The timeframe for foreclosure can be up to a year or more, which is helpful because you can improve your finances to develop a contingency plan.

Non-Judicial foreclosures do not involve the courts. Your lender will most likely use a neutral third party, like a trustee listed on your home’s title deed. This is more flexible, because you get time to catch up with missed loan payments or negotiate with your lender for more time. Unlike judicial foreclosures, this process can finish a lot faster.

Instead of having around a year or more to take care of your finances, so your lender backs off a little, this process can finish within a few months or sooner. If your lender starts going through a non-judicial foreclosure when you default on the loan, you will need to act fast to explore your other options.

This is where you will need an attorney’s help because things move so quickly. It is better to always be prepared for all outcomes rather than hesitating till it is too late.

Where to Get Help Dealing with Foreclosures in California?

For both Judicial vs. Non-Judicial foreclosure, you will get a breach letter from your lender. With non-judicial foreclosure you will receive.

This is important if you believe you cannot catch up on payments to keep your home in time. Your attorney will then take the necessary steps to stop the sale and make sure you do not miss any deadlines.

Click here to contact foreclosure and real estate attorneys in your area of California to discuss the situation further and prevent the risk of losing your home.