What is non-judicial foreclosure?

Non-judicial foreclosure is a legal process that lenders in Washington use to repossess a borrower’s property when they fail to make their mortgage payments. This type of foreclosure is less costly, less time-consuming, and more private than the judicial foreclosure process, since a court is not involved. When non-judicial foreclosure is initiated, the lender sends the borrower a demand letter, also known as an acceleration letter, which states that the entire remaining balance of the loan is due immediately. The borrower then has a certain period of time to make full repayment, or the lender can start the foreclosure process. In Washington, the lender then records a Notice of Default with the county where the property is located and begins marketing the property for sale. When the sale of the property is complete, the lender will receive the proceeds from the sale, which will be used to repay the remaining loan balance. If the proceeds are not enough to cover the balance, the borrower may still be on the hook for the shortfall. This is why it is important for borrowers to act quickly when they receive a Notice of Default, before the foreclosure process moves forward.

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What is non-judicial foreclosure?

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