Judicial foreclosure proceeds through court action, while non-judicial foreclosure follows a power of sale in the security instrument. Notice, cure rights, and redemption periods vary substantially by state.
Standing to foreclose requires holding the note.
Alternative Names:
Mortgage Foreclosure, Foreclosure Proceeding
Why it Matters?
Standing defenses became prominent after widespread note assignment, since a foreclosing entity must establish it holds the note or has authority from the holder, and gaps in the assignment chain defeat the action. Non-judicial foreclosure moves substantially faster but forecloses some defenses that judicial process permits. Redemption periods after sale, where they exist, delay clear title for months.
Frequently Confused with
Related terms
Frequently asked questions
What is the standing defense?
How do judicial and non-judicial foreclosure differ?
