Judicial vs. Non-Judicial Foreclosure: What’s the Difference?

E.J. Simonsen | Oct 19, 2022

There are two types of foreclosure processes: judicial and non-judicial foreclosure. The state of Texas is unique in that it allows for both of them. The process that applies to your home will depend on your particular financial and lending situation. 

In this article, we’ll take a look at the differences between each type of foreclosure process, so you can better understand what to expect from each and act accordingly. 

Judicial vs. Non-Judicial Foreclosure

The core difference between judicial and non-judicial foreclosure is whether or not your lender must go to court before foreclosing on your property. For a closer look, here are both of their definitions: 

  • Judicial foreclosure requires your lender to obtain a judgment from the court before foreclosing on your home. 
  • Non-judicial foreclosure allows your lender to foreclose without going to court, so long as the deed of trust contains a power of sale clause (a paragraph in your home's deed of trust that authorizes the non-judicial foreclosure sale). 

Does Texas Use Judicial or Non-Judicial Foreclosure? 

The most frequent type of foreclosure in Texas is non-judicial foreclosure. It’s common with purchase money loans and rate-and-term finances. 

However, Texas is one of the unique states that allows for both judicial and non-judicial foreclosure processes, so judicial foreclosure isn’t off the table. Judicial foreclosure is required for home equity loans, reverse mortgages, property owner’s associations, and property tax situations.

What Does a Non-Judicial Foreclosure Mean for a Texas Homeowner?

Non-judicial is the most common foreclosure process in Texas, and it can be frightening for any homeowner struggling to make payments on time. Not only are you at risk of losing your home, but the non-judicial process can happen much more quickly since there’s no need to involve the court.

Here’s how the non-judicial foreclosure process generally works in Texas: 

The lender can give the borrower 20 days' notice of default on payment. Then, typically using the 30-day breach letter, they’ll send a notice of sale at least 21 days before the sale occurs, and the foreclosure can happen. Foreclosure sales are held on the first Tuesday of each month, and the property is sold to the highest bidder. 

That’s about a month turnaround, which is remarkably fast compared to the judicial foreclosure timeline of about a year. As the homeowner, it doesn’t give you much time to research your options, develop a solution, and get your home back. 

At Risk of Foreclosure? Contact The Lane Law Firm.

If your Texas home is at risk of foreclosure, you need to take action quickly — regardless of whether you’re facing a judicial or non-judicial process. The quicker you act, the more options you’ll likely have. 

If you need help biding time, figuring out your options, and saving your home from foreclosure, get in touch with The Lane Law Firm. Our experienced foreclosure relief attorneys can help guide you through. 

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