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

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

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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Jay S. Fleischman is a bankruptcy lawyer with offices in Los Angeles and New York. He can often be found on Google+ and Twitter, where he shares information about consumer protection issues and personal finance.
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