Length of Time Pre-foreclosure
The length of time from commencement of the legal action to the legal sale of
the property varies greatly from State to State. See below. This is broken down
into the time it takes to process the documents through the legal system and the
number of days notice one must give of the sale by publication.
Length of Time Post-foreclosure, redemption period
A redemption period enables a borrower to pay off the loan and re-claim the
property for a period AFTER the foreclosure sale. In some cases an owner of an
underlying junior lien or mortgage also has this right. These times also vary greatly from state to state. From zero to about a year!
This delay greatly affects your ability as an borrower to stay in your home or
seek new financing!
Disclosure
We are not attorneys are cannot give you legal advice. We believe this
information to be accurate, but please check with a qualified real estate
attorney in the state in question before making any decision based on this
information.
Our intent is to give you an overview and make you aware that laws differ,
sometimes dramatically, from state to state. You should of course be aware of
the foreclosure laws in your own state and that of any other state that you plan
to borrow in.
The states strike differing balances between protecting the homeowner from
losing their home quickly, perhaps because of a temporary financial crisis on
the one hand, and, on the other hand, the legitimate rights of the lender to try to recover the
money they have lent in good faith expecting to be paid back! How long should a
borrower be permitted to live in a house without paying a dime in mortgage
payments? I guess that depends if you are the borrower or the lender!
Conclusions
Non-judicial sales are almost always quicker than judicial sales. Lenders
will usually make sure their documents provide for this if possible in that
state.
Some states are much more lender-friendly than others. It would be
interesting to know if interest rates are lower in those states than in those
like New York that drag out foreclosures for so long, costing the lender money
and lost income. If interest rates ARE higher in slow foreclosure states this
would mean that GOOD payers are paying a higher interest rate to prevent BAD
payers from losing their property.
More about foreclosures
For more information on foreclosure laws and how to deal with this problem as
a borrower, we recommend
www.fcprevention.com
State by State Foreclosure Rules
| State |
Judicial or non-judicial |
Process days |
Sale
Publication days |
Redemption
period |
Notes |
| Alabama |
Both |
49-74 |
21 |
365 days |
Usually non-judicial |
| Alaska |
Both |
105 |
65 |
365 days judicial only |
Non-judicial requires 30 days default |
| Arizona |
Both |
102 |
41 |
up to 6 months |
Junior lienholders can also redeem |
| Arkansas |
Both |
70 |
30 |
365 days judicial only |
Property must be sold for 2/3 appraised value |
| California |
Both |
117 |
21 |
365 judicial
only |
Non-judicial more
common. |
| Colorado |
Non-judicial |
91 |
14 |
75 |
Judicial foreclosures not
usual. Lender must still obtain a court order after sale is scheduled. |
| Connecticut |
Judicial |
62 |
N/A |
Judge
decides |
Winning bidder at
foreclosure auction has 30 days to pay. Type of foreclosure depends if
equity in property. |
| Delaware |
Judicial |
170-210 |
60-90 |
None. But
borrower could contest the sale. |
Sale can be held at
courthouse or property by sheriff. |
| DC |
Non-judicial |
47 |
18 |
None. |
Sale conducted by
licensed auctioneer, usually at their office. |
| Florida |
Judicial |
135 |
NA |
None |
Sale date about 30 days
after judgment. If borrower cannot be served in person, guardian at litem must be
appointed. Sale by clerk of court. |
| Georgia |
Non-judicial |
37 |
32 |
None |
No right to reinstate
mortgage. |
| Hawaii |
Non-judicial |
220 |
60 |
None |
|
| Idaho |
Non-judicial |
150 |
45 |
365 judicial
only, otherwise none |
|
| Illinois |
Judicial |
300 |
NA |
90 |
Court has to confirm sale
after full bid price paid. |
| Indiana |
Judicial |
260 |
120 |
None |
The pre-foreclosure
delay depends on the age of the mortgage. |
| Iowa |
Judicial |
160 |
30 |
20-365 |
Redemption time depends
on various factors, including whether or not the lender has waived a
deficiency judgment. |
| Kansas |
Judicial |
130 |
21 |
90-365 |
365 days redemption if
1/3 of principal has been paid |
| Kentucky |
Judicial |
147 |
NA |
365 |
Lender can re-possess
immediately if house abandoned. Redemption period only if house sells for
less than 2/3 of appraised value. |
| Louisiana |
Judicial |
180-270 |
NA |
None |
Two types of
foreclosure. Ordinary and executory. Executory quicker and requires
authentic act that includes borrowers confession of judgment. |
| Maine |
Judicial |
240 |
30 |
90 |
Lender must serve default
notice on borrower. Borrower has 90 days after judgment to stay in house and
pay off mortgage. |
| Maryland |
Judicial |
46 |
30 |
Court
decides |
No need for lender to
inform borrower of foreclosure until sale date is set by court. Sale
conducted by licensed auctioneer. |
| Massachusetts |
Judicial |
75 |
41 |
None |
Must get ruling from land
court that borrower not protected from foreclosure by Soldiers and Sailors
Relief Act. Borrower entitled to any surplus if property sold for more than
loan amount. Licensed auctioneer sells. |
| Michigan |
Both |
60 |
30 |
30-365 |
Usually non-judicial.
Sheriff sells property. |
| Minnesota |
Both |
90 |
7 |
180-365 |
Usually non-judicial.
Usually 180 redemption period. But depends on property type and wording of
mortgage. |
| Mississippi |
Both |
90 |
30 |
None. |
Usually non-judicial.
Trustee sells property. Surplus of sale proceeds goes to secondary lenders. |
| Missouri |
Both. |
60 |
10 |
365 |
Usually non-judicial.
Borrower must be served notice of default. Redemption allowed only if the
lender was the successful bidder. Cumbersome procedure for redemption. |
| Montana |
Both |
150 |
50 |
None |
Usually non-judicial.
Trustee sells property. No deficiency judgment allowed. |
| Nebraska |
Judicial |
142 |
NA |
None |
Non-judicial much
quicker. Needs Deed of Trust. With non-judicial, borrower has 30 days after
being given notice to reinstate loan. |
| Nevada |
Both |
116 |
80 |
None |
Non-judicial much more
common. Lender begins foreclosure by filing notice with court and mailing
borrower. |
| New Hampshire |
Non-judicial |
59 |
24 |
None |
Most mortgages require
lender to give borrower 30 days notice of default. Sale usually at the
property. |
| New Jersey |
Judicial |
270 |
NA |
10 |
30 days written notice
given to reinstate mortgage. Sale at courthouse by sheriff. |
| New Mexico |
Judicial |
180 |
NA |
30-270 |
Winning bid must be at
least 80% of fair market value of property. Usually 30 days for borrower or
other lien holder to redeem. |
| New York |
Judicial |
445 |
NA |
None |
Need a court ruling that
can take 7-9 months. The sale set for 4 months later. |
| North Carolina |
Both |
110 |
25 |
None |
Non-judicial more common.
Sheriffs sale. Borrower given 10 days notice of hearing before clerk of
court. |
| North Dakota |
Judicial |
150 |
NA |
180-365 |
Lender must give
borrower 30 days notice of intent to foreclose. Borrower can reinstate by
making up back payments. Borrower usually has 180 days after the sale to
redeem property. Failing which is transferred to bidder. |
| Ohio |
Judicial |
217 |
NA |
None |
Borrower can be served in
person or by certified letter. Advertised if borrower cannot be found. Sales
price must be 2/3 of the appraised price. Sheriffs sale. |
| Oklahoma |
Both |
186 |
NA |
15 |
Judicial more common.
Lender files in court and notice of action served on borrower. Borrower has
20 days to respond. If appraised then opening bid must be 2/3 of appraisal.
Sheriffs sale. |
| Oregon |
Both |
150 |
30 |
None-180 |
Non-judicial more common.
Trustee sells. Borrower can reinstate up to 5 days before sale by paying off
back payments and costs. No redemption period with non-judicial foreclosure. |
| Pennsylvania |
Judicial |
270 |
NA |
None |
Cannot start foreclosure
till 60 days late. Borrower has 2-4 months to try to solve problem before
lender continues. Borrower can prevent sale by paying off full amount owed
up to 1 hour before the sheriffs sale. |
| Rhode Island |
Both |
62 |
21 |
None |
Non-judicial more common.
Attorney must give borrower at least 20 days notice before advertising sale
weekly for 3 weeks. Auctioneer sells. |
| South Carolina |
Judicial |
150 |
NA |
None-30 |
Lender files lis pendens
in court. With 20 days borrower must be personally served. Borrower has 30
days to respond. Hearing officer handles for court. No redemption period if
lender waives deficiency judgment. Otherwise 30 days for another bid to be
given. |
| South Dakota |
Both |
150 |
23 |
60-180 |
Judicial more common. No
need to mail default notice, but borrower has 30 days to respond to court
filing. Borrowers and lien holders have 6 months to redeem unless property
vacant, then 2 months. |
| Tennessee |
Non-judicial |
40-45 |
20-25 |
None-730 |
Most trust deeds provide
no right to redeem. If not included borrower has TWO YEARS. Trustee sale. |
| Texas |
Both |
50 |
NA |
None |
Non-judicial more common.
Lender gives borrower 20 days notice to reinstate. Then can foreclose. Must
give borrower 21 days notice of sale. Trustee sale. |
| Utah |
Both |
110 |
30 |
None |
Non-judicial more
common. Foreclosure started by filing notice with court and mailing to
borrower. Borrower has 3 months to reinstate. Then must publish sale weekly
for 3 weeks. Auction at courthouse. |
| Vermont |
Both |
95 |
NA |
90 but varies |
Usually non-judicial.
Borrower may reinstate prior to the sale by paying back payments and costs.
Borrower receives notice of sale 60 days prior. |
| Virginia |
Both |
45 |
14-28 |
None |
Non-judicial more
common. Borrower gets 30 days notice to reinstate. Lender may pursue
deficiency judgment. Trustee sale. |
| Washington |
Both |
135 |
90 |
None |
Non-judicial more common.
Lenders mails notice of default and either personally serves on borrower or
posts the property. Notice of sale recorded 90 days before actual sale. Sale
advertised twice. For court foreclosures, 1 year right of redemption,
otherwise none. |
| West Virginia |
Both |
60-90 |
30-60 |
None |
Non-judicial more
common. 10 days notice to reinstate. May not be able to reinstate if served
default 3+ times. Borrower can thereafter pay off entire loan any time
before the sale. |
| Wisconsin |
Both |
290 |
NA |
60-365 |
Judicial more common.
Sheriffs sale. 2 month redemption period with abandoned properties. If
property sells for less than judgments, sale will not be confirmed unless
court is satisfied fair market value of property is credited to mortgage. |
| Wyoming |
Both |
60 |
28 |
90 |
Non-judicial more
common. Sale published once per week for 4 weeks. Sheriffs sale at
courthouse. To redeem must pay winning bid plus 10% interest and property
taxes owed |
