Types of Foreclosure

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Judicial Foreclosures
The judicial foreclosure is the type of foreclosure experienced for most part in states that utilize the Mortgage Agreement as the security document for home loans. This foreclosure requires action by a court. A Mortgage Agreement foreclosure usually takes place by a court-decreed sale of the property at an auction. Proceeds from such judicial auction are primarily utilized to satisfy the main debt, or first mortgage. Surplus (remaining balance after debt payment) is paid to other lien-holders, such as second mortgagees and others with subordinate claims on the foreclosed home.

Non-Judicial Foreclosures
"Power of Sale" is part of the Deed of Trust; a shorter and less expensive process for the lenders. Power of Sale grants lenders the ability to sell the property without any intervention from the courts. After proper notices have been sent out and recorded, the subject property is sold at a trustee's sale and the proceeds are utilized to pay off the loan.  Such non-judicial sales are sometimes available (in some states) even if the security document is a Mortgage Agreement.

Other Types of Foreclsoures
Other types of foreclosure are only available in limited places and are therefore considered minor methods of foreclosure. Strict foreclosure is one example. Under strict foreclosure, when a mortgagor  (home owner) defaults, a court orders the mortgagor to pay the mortgage within a certain period of time. If the mortgagor fails, the mortgage holder automatically gains title, with no obligation to sell the property. Strict foreclosure was the original method of foreclosure, but today it is only available in New Hampshire and Vermont.

Below is a list of all 50 states and their respective types of foreclosure:

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho

Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri

Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania

Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming