What is the difference between judicial and non-judicial foreclosure?

In Pennsylvania, there are two types of foreclosure – judicial and non-judicial. The difference between the two primarily lies in the process used to foreclose on the property. Judicial foreclosure, also known as foreclosure by the court, requires the lender to go to court and obtain a judgment in order to foreclose on the property. This is a more lengthy process and involves a lengthy civil procedure. The lender must file a complaint with the court and serve the borrower with a summons and a copy of the complaint. The borrower then has the opportunity to respond to the complaint, after which the court will issue its judgment. Non-judicial foreclosure, also known as foreclosure by power of sale, does not involve court proceedings. Instead, the lender must follow the foreclosure process outlined in the deed of trust or mortgage that the borrower agreed to when they took out the loan. This allows the lender to take back the house without having to go through a lengthy court process. The process typically involves the public sale of the property after a certain amount of time has passed. Both judicial and non-judicial foreclosures have their own benefits and drawbacks for the borrower. However, understanding the difference between the two processes is important for anyone faced with the potential foreclosure of their property in Pennsylvania.

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What is the difference between judicial and non-judicial foreclosure?

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