Judicial vs. Non-Judicial Foreclosure States
I'm a newbie, so please feel free to correct me on anything i get wrong. But from what i understand there are 2 ways states do foreclosures...Judicial Foreclosures and Non-Judicial Foreclosures...
I know Georgia, Arizona, Cali, Texas, Colorado, New York, Mississippi, Alabama, and a few others are non-judicial foreclosure states.
Does it make a big difference how easy it is to successfully invest in foreclosures whether or not your state is a judicial or non-judicial state?
garealestate,
Glad to meet you.
I would like to help with this question, however the laws are so different in every state it would be to challenging to answer correctly.
Most of the pro's in the business recommened from what I have read that a new person should gain expierence in the industry before attempting foreclosure investing.
I wish that Dwan Brent was on board, she is one of the more knowledgeable people in this field, and could offer some great guidance. I know she has a web site maybe someone can give you what it is.
Welcome on board this board, maybe someone can jump in an answer this question. But keep posting sooner or later someone will be able to answer questions about foreclosures or other areas that may interest you.
John $Cash$ Locke
The most significant difference in judicial and non-judicial foreclosure states is the speed at which the process runs from default on the mortgage to sheriff sale.
In Oklahoma (where I used to live), the judicial foreclosure process allows for more time find, prepare an offer, and make a deal on pre-foreclosures. The time frame was generally several months from the time the notice of default was filed until the sale.
In Georgia, on the other hand, foreclosures are not quick, they are SUDDEN. The first notice that the public has of the default is the notice of sale in the newspaper. There is no notice filed at the courthouse or any other place. This process means that you have 30 days or less between initial publication and the sheriff's sale.
This means that you have to act fast. If you need cash, you have to have it lined up IN ADVANCE.
Attorney's fees in GA run up to 15% of the loan balance, so an approach might be to contact the bank and try to buy the note at a discount before they are out of pocket for these fees. Of course, this would only be a viable technique if the lender was a local one.
Tom
It doesnt matter what state you live in, you need to understand the process entirely and to benifit from it. You can make money anywhere. Just educate yourself on how the process works, so that you wont get burned...