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What is a non-judicial foreclosure?

This type of foreclosure happens when a lender doesn’t have to go through the court system to foreclose on a home and especially in situations where there is a deed of trust or power of sale clause.

In the past, non-judicial foreclosures have been heavily regulated and, before the lender started the foreclosure process, they had to send a special notice to the home owner or property owner a  period of time before they foreclosed on a property.

Non-judicial foreclosures have been stopped in Oregon for the last year but the Oregon Supreme Court recently ruled in favor of mortgage lenders to resume the non-judicial foreclosure process.

What Can Homeowners Expect?

Once lenders have the ability to move forward  within non-judicial foreclosures, they won’t be gridlocked by the pace of judicial foreclosures that they may have experienced in the past, and this increased speed in the foreclosure process will mean a variety of things for the homeowner who is about to be foreclosed on including the following:

Short Notice – A home owner will typically receive very little notice that they are being foreclosed on and in many cases when they do receive a notice, it will most likely be just before the scheduled foreclosure of their home.

Right to reinstate mortgage – Even if a homeowner is foreclosed on, they do have the right to reinstate their mortgage but, this means that they will have to pay off any past due balance or fees on their mortgage before they can move back into their home.

Challenging A Non-Judicial foreclosure Can Be Difficult

Due to the speed of judicial foreclosures, a homeowner who faces foreclosure will have to work fast and file a lawsuit against their lender in court to stop the foreclosure of their house or property but, they may not be able to file an adequate lawsuit before they found out that their home has been sold.

To learn more about non-judicial foreclosures, or to view the latest Bend Oregon homes for sale, contact me today by calling (541) 383-1426.