How Does A Non-Judicial Foreclosure Work?
Yesterday I posted the foreclosure process in judicial states so today I will post the same procedural outline for non-judicial states. (Is My State A Judicial or Non-Judicial Foreclosure State?)
In states such as Arizona, Rhode Island and Virginia, the foreclosing mortgage lender or deed of trust beneficiary will use its power of sale covenant which is contained in the mortgage. This covenant provides the lender or the trustee that holds the deed of trust, the right to foreclose the loan that is in default by filing a notice of default. The notice of default is filed with the county recorder's office.
Here is the step by step foreclosure process as it applies to non-judicial foreclosure states:
- Trustee files a notice of default with the county public recorder's office
- Trustee sale date is set
- Sale is advertised to the public
- The property is sold to the highest bidder or it is taken back by the lender if the high bid is not accepted
Tags: Foreclosure : Non-judicial : law : mortgage
