What is the typical length of time and process of a Judicial Foreclosure?
Last Updated: Dec 22, 2017 01:24PM EST
In a judicial foreclosure state, a lender must file a lawsuit in order to foreclose on a property and gain title. After a lender has provided the borrower with proper Notice of Default and the borrower fails to remedy the default in the permitted time-frame, Groundfloor can engage legal counsel to commence foreclosure. Our legal counsel will prepare a Complaint for foreclosure establishing the reasons why the court should issue a Foreclosure Judgment. Once the Complaint is filed, the borrower will be issued a Summons, notifying them of their rights and stating how many days they have to file an answer and response, which is provided to the court. A typical response time is thirty days, but it can be extended.
Please note that in judicial states, a successful title transfer could take 12 months, or possibly longer. Timelines and regulations vary from state-to-state, which unfortunately can be lengthy and very costly. For this reason, Groundfloor will only proceed with foreclosure as a last resort when attempting to resolve a defaulted loan.
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