Judicial vs. non-judicial foreclosures

Judicial Foreclosures
Judicial foreclosures are normally conducted in states where a mortgage is used as the security instrument. The foreclosure process begins with the lender filing a complaint and a notice of Lis Pendens in the county where the property is located, these will normally be filed with the circuit court. After the complaint and notice are filed, all defendants must be notified of the court action by a process server, or in some cases, by mail. After the service of process is complete, the lender will seek an entry of judgment or summary judgment. The judgment will have the entire amount due the lender and set a sale date for the property. Newspaper publication of the upcoming sale will usually be required once a week for two or three weeks, then the property will be sold at public auction either by a clerk of the court or a sheriff. A certificate of sale will be issued by the court usually between a few days to a few weeks after the sale. The certificate of sale transfers ownership of the property to either the high bidder at the auction, or the lender if the lender was the high bidder. It is important to note that each state has specific procedures and timelines for this process that can be found in your state statutes.
Important Milestones:
Filing of Lis Pendens
Entry of Judgment
Newspaper Publication of Sale
Public Auction
Certificate of Sale

Non-Judicial Foreclosures
Non-judicial foreclosures are normally conducted in states using a deed of trust as the security instrument. The process varies widely by state, with some states requiring nothing more than publication of the Notice of Sale, others will require two or three steps to complete the foreclosure process. In states where a Notice of Default is used, the Trustee will usually record the Notice of Default along with mailing the notice to the homeowner, wait through the statutory period for owner reinstatement, then record, mail to the homeowner and publish in the newspaper a Notice of Trustee Sale. The Notice of Trustee Sale will define the place of sale, the estimated opening bid, the property address and the date and time of the sale. Auctions are held in a public place, which can range from in front of the property being sold to the more common locations of the local courthouse steps or civic areas. The successful bidder at the auction will receive a Trustee's Deed to the property usually within 30 days of the sale. It is important to note that each state has specific procedures and timelines for this process that can be found in your state statutes.
Improtant Milestones:
Notice of Default
Notice of Trustee Sale
Newspaper publication of Sale
Public Auction
Trustee's Deed upon Sale