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

In Virginia, foreclosure defense law generally distinguishes between judicial and non-judicial foreclosure processes. Judicial foreclosure is a process used by lenders to recover a debt when a borrower has defaulted on a loan. The court begins the process by granting a request from the lender to declare the default. The court then authorizes a sale of the property, and any proceeds from the sale are used to satisfy the debt. Non-judicial foreclosure, on the other hand, is a process in which a lender can regain ownership of a property without going to court. Under Virginia law, non-judicial foreclosure is usually the primary method used. This process begins when a lender officially records a Notice of Default with the local clerk and/or with the circuit court. The borrower then has the opportunity to catch up on their loan payments, and if they fail to do so, the property is then put up for auction. The main difference between the two processes is that judicial foreclosure requires the lender to prove to a judge that the borrower has defaulted on the loan, whereas non-judicial foreclosure does not require any court action. Because of this, non-judicial foreclosure is often faster and less costly for the lender, but can be more problematic for the borrower. As such, both processes should be carefully considered by borrowers prior to entering into any loan agreement.

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

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