Which states are best to foreclose a note and which states it takes years ???

Question

Hi,

Before i buy a NPN i want to know which states forecloser is quick - less then a year?

And what states this procedure is very long and expensive ???

Dion DePaoli · Answer

An add on to Bill and Jay's comment.  Even in "Title Theory" states, where the security instrument is a Deed of Trust the foreclosure can still be judicial.  Any judicial process will take longer than a non-judicial process simply by the nature of having to go to court.  For instance in the state of California "Power of Sale" can be included in the security instrument however that means a waiver of any deficiency if invoked.  A deficiency can be obtained through a judicial foreclosure process however,  The Mortgagee must pick one action path there to pursue which will affect the potential time. Further, non-judicial proceedings in some states can be challenged.  This would add time to achieving the final outcome as expected in order to go to court and make or defend the case as needed.  The list provided in that link is not overly accurate.  There are some better lists out there if you search.  The "costs of foreclosure" vary according to state, time and process.  Usually quicker actions cost less.  It is important to understand that while some states have expensive judicial process the overall cost of recovering from a default includes much more than just the cost to foreclose.  There is bankruptcy risk, which you may have to defend.  There are advances that are typically made to preserve the property and its title and keep other potential lien holders from gaining superior status to the security instrument like property taxes.

Bill Gulley · Answer

Depends on the note as Jay mentioned, non-judicial states will be quicker but federal laws require notice, demands, collection records, modification allowances, redemptions and 120 days before you can proceed. In Mo. I can get one through in about 4 to 5 weeks under state law, but now, the feds have extended that for owner occupied. BTW, doesn't mean the borrower has to be living in the property, it's the loan type and collateral. :)

Jay Hinrichs · Answer

Generally speaking,,, mortgage states take longer than Deed of trust states.

some states are very fast  like Georgia... Mississippi  even the west coast states can be 6 or 7 months or less...

there are new rules about not starting a foreclosure for 120 days if its owner occ.

you can hire foreclosure trustee services to do this for you.

Jesse O. · Answer

@Neil Schoepp

No problem!  I just wanted to back everyone up!

Neil Schoepp · Answer

@Jesse O. thanks for the catch. I collect "useful" info as I read post here. Apparently this was not as useful as I first thought. I was unable to remove the link but did add an update to the post. It's good to have a set of more experienced eyes looking over things.

Neil Schoepp · Answer

@Eran Linker hope this helps. It will at least serve as a starting point.

Foreclosure by state

Jay Hinrichs · Answer

@Jesse O.

Florida is in deed judicial and 1 year process at minimum.. from what I understand.. From what I understand NY is one of the longest.

Jesse O. · Answer

I would check that list, I'm pretty sure Florida is a "judicial" state . . .

Which states are best to foreclose a note and which states it takes years ???

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