The process of selling real property under a power of sale in a mortgage or deed of trust that is in default. One disadvantage is that the lender cannot obtain a deficiency judgment. Also, some title insurance companies are reluctant to issue a policy unless a court has judicially foreclosed the mortgagor's interest.
A foreclosure which does not involve filing an action in a state court. A typical procedure involves notice to the interested parties (either by personal service or an alternate method such as publication )and sale of the property. The Court provides no overview of the process unless petitioned by the Mortgagor. However1 the process varies from state to state and is sometimes combined with a judicial foreclosure process. (see related definition)
A non-judicial foreclosure is one that can occur without court approval.
The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default.
A type of foreclosure that does not involve the courts. Unlike judicial foreclosures, this process usually gives the lender the title to the subject property ( deed in lieu of foreclosure) or the power to sell the property ( power of sale clause). For more information, see the "Everything You Want To Know About Foreclosure" article in the "Real Estate In-Depth" section.
The foreclosure process whereby the a "Power of sale" clause, preauthorized by the borrower exists in a mortgage or deed of trust . A power of sales provision in a mortgage allows the sale of the property to take place in the event the borrower goes into default.
Foreclosure on a mortgage without filing a lawsuit or obtaining a court order. Generally such sales occur because the borrower has signed a document, such as a deed of trust, giving a trustee pre-authorization to sell the real estate to pay off the debt.