What is a judicial versus non-judicial foreclosure?
“A judicial foreclosure goes through court. A non-judicial foreclosure does not. Some states require that all foreclosures be judicial; others set forth procedures for non-judicial foreclosures. Whether a foreclosure is judicial or non-judicial is significant- it affects the foreclosure process and procedures, how you can raise defenses, and often whether you’ll be liable for a deficiency after the foreclosure sale. “ Source www.nolo.com
Thanks to a recent report by CoreLogic, we know that foreclosures have fallen dramatically over the last two years including a 34% drop from 2012 but what’s interesting to know is that the remaining bulk of foreclosure inventory resides in judicial foreclosure states, where almost more than two thirds of U.S. foreclosure inventory remains.
Why Do Judicial Foreclosures Take Longer?
Anyone who is familiar with the foreclosure process will know that foreclosures typically can take a long time to be processed, even as long as hundred 120 days, but this process can be extended even further in judicial foreclosure states because, once the courts get involved in the foreclosure process it could take you longer from start to finish thus elevating the foreclosure inventory level the your state might have.
The Real Numbers
The CoreLogic report shows us that as of August 2013 judicial foreclosure states accounted for over 70% of foreclosures and this is up from one year ago when the judicial foreclosure share was just over 67% and the current judicial foreclosure statistics are even higher than what they were during the rapidly growing real estate market from 2002 to 2006.
What’s Being Done To Curb The Foreclosure Tide?
Thanks to historically low mortgage interest rates, underwater homeowners who are considering foreclosure have been able to get there mortgage loans back on thanks to refinancing, loan modification or even short sale before choosing foreclosure but, sadly, there still are many homeowners across the United States who are so far underwater that it may take them another 4 years, or longer, before they are able to rebuild the equity in their homes and many homeowners may consider short sale or foreclosure as a way out so they can get the fresh start that they’re looking for financially.
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