Also known as: nonjudicial foreclosure · non-judicial foreclosure · non-judicial foreclosures · extrajudicial foreclosure
Written by attorneys · grounded in primary & secondary sources — see below
A foreclosure proceeding conducted without court supervision pursuant to a power of sale in the security instrument and governing state law.
Nikhil Narayan defaulted on payments secured by a deed of trust containing a power-of-sale clause. Nexus Financial directed the trustee to post and publish the required notices under state statute and conduct a public auction of the property. The sale transferred title to the highest bidder without any court filing or judicial decree.
Noah Nakamura missed several loan installments on property subject to a mortgage. After confirming the default and verifying that all notice and cure conditions in the mortgage and state law had been met, Nordic Ventures authorized its agent to record the notice of nonjudicial foreclosure and schedule the sale.
Select any source to read its text and confirm it supports the definition.
A default in the obligation must exist. All conditions required by the mortgage agreement and by law must also be satisfied.
Supporting sources
Nonjudicial foreclosure proceeds under the mortgage or deed of trust and state statute without court action. Judicial foreclosure requires filing a lawsuit to terminate the equity of redemption.
Supporting sources
The notice must identify the creditor and any person authorized by the creditor to foreclose.
Supporting sources
Yes. The creditor may authorize another person in a record to commence the proceeding.
Supporting sources
…goes forward unless the mortgagor obtains a court order enjoining the foreclosure. Because the statutory scheme allows extrajudicial foreclosure, we adhere to the familiar rule that one who sells under a power of sale must follow strictly its terms; otherwise the sale is void. One of the terms that must be strictly adhered to is the…