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What is the difference between a nonjudicial foreclosure and a judicial foreclosure?

by Pamela Stewart, Attorney at Law on October 13, 2007 · 0 comments · Posted in General Bankruptcy Information

Nonjudicial foreclosures are conducted by the lender in accordance with the terms of the mortage and in accordance with state law. Nonjudicial foreclosures can be completed in a relatively short time, and are not heard by a judge, unlike judicial foreclosures.

Judicial foreclosures require the lender to file a lawsuit with the court and ask a judge to foreclose on the borrower. A judicial foreclosure is more costly and is much more time-consuming than a nonjudicial foreclosure.

Almost all mortgage loans in Texas are foreclosed upon nonjudicially. The exception is home equity loans which require a judicial hearing. A nonjudicial foreclosure in Texas can occur in less than 60 days if there are no problems.

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