What is a Non-judicial Foreclosure? The simple answer, the lender will auction off your house. As the name would imply, non-judicial foreclosure does not involve a lawsuit. The lender issues the homeowner a Notice of Default and a notice of its intent to sell the homeowner’s property. The trustee must record the Notice of Default in the recorder’s office in the county in which your property is located. The Title Insurance Company involved in your original purchase of the property can be helpful in clarifying whether the Notice of Default was properly filed. With foreclosures at the highest levels since the Great Depression, lenders are overworked and short staffed. This can be a positive factor for a homeowner facing foreclosure. There are occasions in which a trustee mistakenly records against the wrong property, a transposed street address or in the wrong county. Be on guard of clerical errors, transposed street numbers, or misspelled names invalidate the foreclosure. This does not mean you are “home” free, pardon the pun, but what it does do is give you another 90 days as the lender needs to start the foreclosure process over
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