Some people are still clueless when it comes to the process of foreclosure. When your house is subject to foreclosure, you can either go through a judicial or non-judicial foreclosure. The kind of process will also depend on the location of your house because some states allow both types of foreclosure while some only allows one type of foreclosure.
The foreclose process will not happen if you miss one payment. The court will generally give a 15-day period for the homeowners to pay their debts. But if the homeowner still fails to pay after the allotted time, then the homeowner will certainly face foreclosure. Only after a series of failed payments will the lender or the bank take action.
A judicial foreclosure is settled in court and the lender will need to file a complaint form to decide whether the property should be foreclosed or not. The homeowner will receive the complaint and will need to appear in court to defend their case.
A non-judicial foreclosure is settled between the lender and the homeowner. Both parties don’t need to appear in court and they can reach an agreement regarding the foreclosed property.