What is a Judicial foreclosure?
A judicial foreclosure requires the legal process of foreclosure to go through the court system in order for a lienholder to sell the asset to satisfy the note. The laws vary from state to state. In Texas, the judicial foreclosure process applies. A lender will initiate the foreclosure process by filing a lawsuit or lis pendens, requesting a court ordered foreclosure sale of the property to satisfy the note.
The foreclosure timeline for a judicial foreclosure can be much lengthier than a non judicial foreclosure due to court involvement.
Through a judicial foreclosure, the lender will call the entire note due, but this may not be enough to satisfy a borrower’s debt. A lender can must sue the borrower for the deficiency and obtain a judgment for the remaining balance owed.
In general, the borrower has the right to reinstate the mortgage and bring it current. In many states, the borrower has redemptive rights after the foreclosure sale date has occurred. The rules and requirements of both property types and borrower actions will vary greatly by state, so competent legal counsel is absolutely necessary.
Texas is a non-redemptive state, and one a property has been foreclosed on, the borrower no longer has any rights to redeem the property.
If you have any further questions about Judicial foreclose, please contact us.
The foreclosure timeline for a judicial foreclosure can be much lengthier than a non judicial foreclosure due to court involvement.
Through a judicial foreclosure, the lender will call the entire note due, but this may not be enough to satisfy a borrower’s debt. A lender can must sue the borrower for the deficiency and obtain a judgment for the remaining balance owed.
In general, the borrower has the right to reinstate the mortgage and bring it current. In many states, the borrower has redemptive rights after the foreclosure sale date has occurred. The rules and requirements of both property types and borrower actions will vary greatly by state, so competent legal counsel is absolutely necessary.
Texas is a non-redemptive state, and one a property has been foreclosed on, the borrower no longer has any rights to redeem the property.
If you have any further questions about Judicial foreclose, please contact us.