Judicial Foreclosure Definition and Explanation
A judicial foreclosure is one that the courts have the authority to take over and start the process of foreclosure. This process varies greatly depending on where you live and how your mortgage works. In many cases, this type of foreclosure is only available to homeowners behind their mortgage payments and in a rush to get out from under the debt.
Many people facing this type of foreclosure may be eligible for government assistance, including the HAMP program. In some cases, the foreclosure auction will occur in the public notice section of a courthouse or the Probate Courthouse.
What Law Says About Judicial Foreclosure
The judicial foreclosure definition clearly states that this type of foreclosure is a last resort. The homeowner has to be at least eighteen days behind on the mortgage, and there have to have been repeated attempts to contact the homeowner to arrange payment arrangements. The homeowner must be served with legal papers and appear before the judge enters a formal foreclosure agreement. If the judge agrees to the sale, the new owner will go forward without any involvement from the homeowner or the bank. At this point in the process, there will be no chance of a re-sale of the home since the house has already gone to the bank.
This is a critical time for the homeowner because it’s not always easy to recover from a foreclosure. While there is a loss of equity, there could still be some equity left if the homeowner can prove that there were errors made in the mortgage paperwork. For this to happen, the homeowner should hire an attorney specializing in foreclosure law to get a clear picture of what the process entails. In many states, the homeowner does not even have to pay for the attorney since it’s government-funded. This is important because if the homeowner does nothing with the judicial foreclosure definition of foreclosure, then they could lose all their equity, and their home could be taken away.
How it works in Astoria, NY
For many years, it was assumed that how judicial foreclosure works differs from the non-judicial method in many states. This has been due to confusion over how each state’s courts define the mortgage process and how they view taking home through foreclosure. Some have even suggested how the non-judicial process for foreclosure works is similar to how judicial foreclosure works. However, the truth is that there are apparent differences between the two methods of selling a home in many states.
Judicial foreclosures may last anywhere from six months to around three years, based on the state. To begin the foreclosure process, the mortgage servicer, or the company to which mortgage services are paid, must wait until the borrower is delinquent on payments for 120 days.
The servicer will notify the foreclosing party with a breach letter, allowing the debtor to know they’re in default on their mortgage. Typically, the debtor then has 30 days to cure the default, and if they’re unable to, the servicer will proceed forward with the foreclosure proceeding.
Can I handle it myself?
Even if you understand the judicial foreclosure process, it’s not enough for good defense. Contacting an attorney will save your time on learning how to fill in documents and the next steps. It hardly recommended calling a professional if something is wrong. Besides, many of them offer free quotes.