The Non-Judicial Foreclosure process, also known as Power of Sale, is authorized for use in many states if there is a “power of sale clause” included in the mortgage or deed of trust that was used to purchase the property.
For a lot of states, almost all mortgages are actually deeds of trust. This foreclosure process involves the sale of the property by the mortgage holder without the court’s supervision. Unlike the Judicial Foreclosure process, the Non-Judicial Foreclosure process is much faster and cost much less compared to Judicial Foreclosures. With regards to proceeds from the sale of the property, Mortgage holders get first lien on the property followed by others with claimants.
A Notice of Default Letter, NOD, is usually required to be sent out to the borrower in default no less than 30 days before any foreclosure actions takes place.
A Notice of Default is a notification given to a borrower stating that he or she has not made their payments on time or is in breach of the mortgage contract. This notice will tell you that if the overdue money owed, plus additional fees, is not paid by a given time or the breach(es) are not remedied by a given time, that the lender may choose to foreclose on the borrower’s property. Everyone listed on the loan will be affected by the foreclosure and they will also receive a copy of the notification.
Notice requirements vary widely from state to state and may change over time.
Please check your states website for up to date details of required notices.