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

In Florida, foreclosure law provides protection to homeowners from lenders who are attempting to collect on a loan that has gone into default. One of the ways in which lenders can recover unpaid loans is by initiating foreclosure proceedings. In Florida, there are two different types of foreclosure proceedings: judicial and non-judicial. In a judicial foreclosure, the lender files a lawsuit against the borrower in court. The court then supervises the foreclosure process and the borrower has the opportunity to defend themselves in court. The court’s decision then determines whether the lender can foreclose on the home. In a non-judicial foreclosure, the bank utilizes the power of sale clause in the original loan agreement to initiate foreclosure. This means that the borrower has less opportunity for defense against the foreclosure and they must make payments before a certain date or have the home foreclosed on. The foreclosure procedure is usually handled by a third party and the lender does not need court approval. Ultimately, the differences between judicial and non-judicial foreclosures boil down to the amount of control the court has over the proceedings. With a judicial foreclosure, the court has the power to rule in favor or against the borrower and provide protections that are not available with a non-judicial foreclosure. This makes judicial foreclosures more advantageous for borrowers who are fighting to stay in their homes.

Related FAQs

What are the legal consequences of a foreclosure?
What is a notice of default in a foreclosure?
What are the differences between foreclosure and pre-foreclosure?
What is a foreclosure defense attorney?
How can I protect myself from foreclosure?
What options do I have to avoid foreclosure?
What is a deed in lieu of foreclosure?
What is a deficiency judgment in a foreclosure?
What is an accelerations clause?
What happens to the balance of my loan after a foreclosure?

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

Related FAQs

Related Blog Posts