How do lenders foreclose on property owners?
Lenders foreclose according to the laws in the state where the property is located. There is either a “judicial” or “non-judicial” foreclosure procedure that must be followed. States that use mortgages to document property ownership follow the judicial procedure, which requires lenders to file a court case to prove default before they can foreclose. States that use deeds of trust follow the non-judicial procedure, which does not require a court case. Non-judicial foreclosures can take as little as 30 days to complete. Judicial foreclosures can take much more time because of the need to have the court approve the foreclosure action.
