foreclosure is when a mortgage lender attempts to seize and sell a property when a borrower has stopped making payments. But did you know there are two types of foreclosures? These two types are known as judicial and non-judicial foreclosure.   

What is a Judicial Foreclosure? 

A judicial foreclosure is allowed in all 50 states and occurs when a lender notifies the borrower of missed payments and then files a lawsuit and a lis pendens. A lis pendens lets the public know of the pending foreclosure lawsuit. The court then handles the entire process. Judicial foreclosure can be divided into two ways: foreclosure by sale and strict foreclosure. 

sheriff's sale

Foreclosure by sale is when the home gets auctioned off to the highest bidder, with the lender placing an opening bid first. This is also known as sheriff sales.

On the other hand, a strict foreclosure is when the court sets a date for when the owner must pay the mortgage. If they fail to do so by the set date, the court then awards ownership to the lender with no auction. 

What is a Non-Judicial Foreclosure? 

Where a judicial foreclosure involves the court, a non-judicial foreclosure does not. The non-judicial foreclosure process, sometimes known as Statutory Foreclosure, lets a lender advertise and sell a property at a public auction without going to court. 

This type of foreclosure can only be used when a power of sale clause was added to the mortgage, and the borrower agreed to it when they took the loan. This clause gives a third party the right to sell the property when the borrower has stopped making payments.  

A non-judicial foreclosure process starts when the lender files a Notice of Default (NOD), which is recorded in the county’s deed’s office. This notifies a borrower that they have a certain period of time by which they must make up missed payments. If the borrower fails to do so, the lender will notify the borrower of the property’s sale and that it will be put up for auction. 

Our Experience With Johnson County KS Foreclosure 

The Cherry Park Properties team is highly experienced in helping people avoid going into foreclosure and educating those who ask the question, “How can I sell my house fast in Johnson County KS?” Because foreclosure laws vary by state and are subject to change, we highly recommend you work with a real estate investment team – like Cherry Park Properties – to help you get through the process. Contact us at 913-839-2345 to discuss your options and see how we can assist you.