Mortgage contracts qualify for judicial foreclosure if the borrower defaults on the mortgage loan. Before foreclosing on the property, the mortgagor must first file a complaint and wait until the court renders a judgment. Several factors determine how long the foreclosure process takes, including the borrower's legal defense and how busy the court is.
Alternatively, a deed of trust gives the lender a nonjudicial foreclosure option, known as a power of sale clause. Borrowers involved in a deed of trust must do everything they can to keep up with payments; the completion time for the non-judicial closure process is two to three months.
States have varying rules, procedures, and notice periods for judicial and non-judicial foreclosure. Lenders must follow state law to sidestep obstacles to a foreclosure sale. Some states give borrowers the chance to buy back their homes through a redemption period.