What is judicial and nonjudicial foreclosure?
A. Judicial foreclosure is a lawsuit that the lender brings against the borrower to get the property. Like all lawsuits, it starts with a summons and complaint served upon the borrower and any other parties with inferior rights in the property. Remember, all junior liens, including tenancies, are wiped out by the foreclosure. If the borrower does not file an answer to the lawsuit, the lender gets a judgement by default. A referee is then appointed by the court to compute the total amount due. The lender then must advertise a notice of sale in the newspaper for four to six weeks. If the total amount due is not paid, a public sale is conducted by the referee on the courthouse steps. The entire process can take anywhere from three months to twelve months depending on the volume of court cases in your county. If the proceeds from the sale are insufficient to satisfy the amount owed to the lender,the lender may be entitled to a deficiency judgement against the borrower and anyone else who g
