Foreclosure
Law Definitions
Non-Judicial
Foreclosure Definition
A
non-judicial foreclosure is the power to foreclose on a
property without court approval or intervention. The
non-judicial process of foreclosure is used when a power
of sale clause exists in a mortgage or deed of trust. A
"power of sale" clause is the clause in a deed
of trust or mortgage, in which the borrower pre-authorizes
the sale of property to pay off the balance on a loan in
the event of the their default. In deeds of trust or
mortgages where a power of sale exists, the power given to
the lender to sell the property may be executed by the
lender or their representative, typically referred to as
the trustee. Once a homeowner is served a Notice of
Default or Notice of sale an auction will be set to sale
the home in default. Auctions of non-judicial
foreclosures will generally require cash, or cash
equivalent either at the sale, or very shortly thereafter.
Each
non-judicial foreclosure state has different
procedures. Some do not require a Notice of
Default, but start with a Notice of Sale.
Others require only the publication of the Notice of Sale
to announce the sale, with no direct owner notification
required.
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