Foreclosure is a distressing situation for any homeowner. However, Nonjudicial Foreclosure is something of a lifeline to homeowners who need a quick and comparatively inexpensive way to address foreclosure. In this blog, we’ll review the basics of Nonjudicial Foreclosure and discuss the advantages to the homeowner.
What Is Nonjudicial Foreclosure?
Nonjudicial foreclosure is a particular process that can be used by lenders to foreclose on a property when the borrower has not been able to fulfill their financial obligations. This type of foreclosure is used when loan documents have been secured using a Deed of Trust. A Deed of Trust protects the legal rights of the lender and allows for the lender to foreclose on a property when the terms of the loan have not been met.
In a Nonjudicial Foreclosure, the property is seized by the lender with little or no court involvement. Because the process is handled without any court or legal proceedings, it’s commonly seen as a more expedient way of dealing with foreclosure and can usually be much less expensive than litigation.
Benefits to the Homeowner
When many people think of foreclosure, they assume the worst – foreclosure proceedings are expensive and protracted, with no hope for the homeowner. However, Nonjudicial Foreclosures can be a much better option. Not only is the process quicker than a full court trial, but it means that the homeowner can avoid a lot of the associated costs of a court case.
Because the process can be expedited without a judge or court involvement, it can take a fraction of the time of a regular foreclosure – as little as four to six weeks. That means the homeowner can avoid the long drawn out processes of a traditional foreclosure and can have peace of mind knowing that the issue will be handled quickly and efficiently.
Nonjudicial Foreclosure may not be the perfect solution, but it can certainly be a huge benefit to those dealing with foreclosure. It’s important to understand the legalities of this process, and to know when it is the best route to take.