Non-Judicial foreclosure is the process by which your mortgage lender, under the specific and express terms of your mortgage, will claim a legal right to your property and proceed with having your property sold at a public auction in the absence of a formal judicial hearing or proceeding. Since the courts do not administer the foreclosure process in a non-judicial foreclosure state, the authority and responsibility lies with the trustee who must follow the strict rules governing the foreclosure and sale process in your state.
The major advantage of non-judicial process is that the mortgage lender, in most cases, is not permitted to pursue a deficiency judgment against you in the event that your property sells for less then the amount you still owe on your home loan.
A non-judicial foreclosure starts when the trustee, at the request of your lender, prepares and mails to you a legal document known as a “Notice of Default and Election to Sell”. This document, in most cases, is your official notice that because of your non-payment and default of your loan, a non-judicial foreclosure process has commenced and that the lender intends on proceeding with the sale of your home at a public auction. The proceeds of such a sale will be used to payoff your loan with the lender.
In most cases, the non-judicial foreclosure process will take between two to four months to complete leading to the sale of the property. This is your window of opportunity to attempt to stop the foreclosure process. You should know that the time period could turn out to be longer if the trustee fails to fully comply with the terms of mortgage documents or if the trustee violates any of the many rules governing the foreclosure process in your state.