Non-judicial Foreclosure
? The lender will auction off the house.
As the name would imply, non-judicial foreclosure does not involve a lawsuit. The lender issues to the homeowner a Notice of Default and a notice of its intent to sell the homeowner's property. The trustee must record the Notice of Default in the recorder's office in the county in which your property is located. The Title Insurance company involved in your original purchase of the property can be helpful in clarifying whether the Notice of Default was properly filed.
There are occasions in which a trustee fails to record the Notice of Default, or mistakenly records it against the wrong property, or in the wrong county. Be on guard of clerical errors as they invalidate the foreclosure. If an error is found, do not wait until the last week in the foreclosure before advising the trustee of their mistake. Send a letter to the trustee advising him/her of the failure to properly record the Notice of Default and demand that the trustee start over. This letter should be sent by Certified Mail with return receipt requested. If you hand-deliver the letter, be sure you have a copy that can be signed as proof of delivery.
If the trustee ignores your request, you have the right to file a lawsuit to stop the sale. This will give you more time to navigate through the foreclosure process. You can demand the foreclosure be stopped until the trustee starts the foreclosure over again from the beginning by issuing a new Notice of Default. A word of caution: be sure your lender has your current address. The trustee is only obligated to send a Notice of Default to the address listed in the deed of trust, so if you are renting the property or you have moved out of the house you may not receive these legal documents as the lender may only have the last address you provided them.
The Notice of Default must be published in a newspaper of general circulation in the county where your property is located. This is a requirement in most states. The notice must be published within days after the recording of the Notice of Default and must be published weekly until the sale. As the property owner you have a right to receive an Affidavit of Publication from the trustee and copies of the newspapers in which the notice appeared.
It is your right to request and receive a Beneficiary Statement from your lender after you have received the Notice of Default. Request this statement in writing and send a copy to the trustee. The lender is required to respond to this request and it will also give you an opportunity to check the Notice of Default for any errors.
As in judicial foreclosure, the homeowner has a chance to stop the sale by paying the default amount owed or by coming to an agreement with the mortgage lender. This agreement may include setting up a repayment plan and being allowed the option of delayed payments for a specified amount of time. The property owner can also stop foreclosure by filing for either Chapter 13 or Chapter 7 bankruptcy. If the homeowner fails to stop the foreclosure, the house is auctioned off in the same manner as a judicial foreclosure.
Non-judicial foreclosures are more beneficial to the lender as the lender does not incur the legal costs of bring a lawsuit against the homeowner.
If you, or anyone you know is facing foreclosure it is important that they understand the process. To learn more about the foreclosure maze see http://www.defeatforeclosure.org This eBook can save you house, your credit, your rights and prevent you from being victimized a second time by the fraudulent foreclosure scam artists. William Dorich has 25 years in commercial printing and book publishing experience. After authoring five of his own books on Balkan history he established his own publishng firm, GMBooks.com in 1985. Since then he has designed, produced, and published over 125 titles including Witness to War: Images of the Persian Gulf War for the Los Angeles Times which won a Pulitzer. His client list includes the Who's Who in American business. |
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