What is non-judicial foreclosure?

Non-judicial foreclosure is a legal process in which a secured creditor can foreclose a homeowner’s property without having to go through the court system. In Florida, a non-judicial Foreclosure is sometimes referred to as a “Power of Sale Foreclosure” and is governed by Chapter 702 of the Florida Statutes. Non-judicial foreclosures are allowed in Florida when a homeowner has signed a mortgage agreement that includes a “power of sale” clause. This clause gives the lender the right to foreclose on the homeowner’s property without involving the court system. The lender can initiate the foreclosure process by sending the homeowner a “Notice of Default” that informs the homeowner that their loan is in default and that the lender may begin the foreclosure process if the loan is not brought current. The foreclosure sale will then be held after the homeowner has been given the required amount of time to cure the default. Once the sale is held, the homeowner will lose title to their property and the lender will be able to use the proceeds from the sale to cover the loan balance and any additional fees associated with the foreclosure process. Non-judicial foreclosure is an efficient process that allows lenders to quickly and efficiently recover their funds in situations where homeowners have defaulted on their loan. Understanding the foreclosure process and preparing for it in advance can help homeowners minimize the impacts that a foreclosure can have on them and their family.

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What is non-judicial foreclosure?

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