Foreclosures, Judicial VS Non-Judical States.Why should I care ?

Real Estate Agent with

Last week as in every week bunches of numbers come out about foreclosures. The numbers are high and the doom and gloom people talk about back logs, and banks "holding" tons of foreclosures. One fact that is very important and left out of the discussion is: Are you talking about a Judicial State or a Non-Judicial State when discussing foreclosure numbers ?  Why should I care?

Georgia is a non judicial State. What this means is at the closing you sign a piece of paper, among the tons that you sign, that says if you fail to pay your mortgage the bank can foreclose on your property and does not have to take you to court. Hence the term Non Judicial. Now the opposite is true in States where the bank has to take you to court to foreclose. These are the judicial states.

Here is why this is important. After the Big wrongful foreclosure lawsuit settlement the Non Judicial States processed their foreclosures quickly. This had a double impact. If you were a seller who had not paid your mortgage for over a year or even two in some cases you got foreclosed on. If you are a buyer the price of foreclosures in Non Judicial States is going up. There are multiple bids often over asking.

In Judicial States however the drag continues as the banks have to wind these homes through the courts.

If you are looking at the National numbers and trying to figure out whether to buy ,sell, or hold remember the numbers are a blend of Judicial and Non Judicial States . Take this fact into account as part of your analysis. If you are buying in the North Georgia Mountains let the pros at All Mountain Realty set the expectations for you as you are dealing in a non judicial market that has an inventory and a backlog this is small and moves quickly.

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Charlie Ragonesi All Mountain Realty Big Canoe and Mountain Blog

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Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Yes that is correct we too are in a non-judicial foreclosure state.  Keep up the good work.

Jul 15, 2012 02:15 AM #1
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

I run into this challenge all the time. I do mortgages in 8 states, each state has something different, that can effect real estate or mortgages.

Jul 15, 2012 09:27 PM #2
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