Judicial Foreclosure is referred to as the proceedings on a property that lacks the power of sale notion. This phase happens when the foreclosure proceedings have to be settled in the courtroom.
Judicial Foreclosure helps protect the equity that borrowers might still have in the foreclosed property. If, the auction fails to gather the mortgage amount for the lender, the borrower is held liable for all the remaining balance.
When faced with this situation, you have a couple of routes you can take. You can opt for the stereotypical path and list your house for sale. However, listing your house means you’ll have to carry out renovations and fix up the house before you can make the final sale.
If the house you own is sold by the lender who lent the mortgage to you during an auction, you cannot make a sale on the house after that. However, most states give the homeowners a redemption period, which varies from six months to a year, in which you can reclaim the ownership of your old house after paying the lender the full amount of the mortgage.
Wholesalers buy your house as it is. No need to make new arrangements or get your house ready for sale. Moreover, wholesalers help you avoid any commission or fees, saving you more money.
No need to go out and put your house up for advertising or list it for sale. An investor can reach out and purchase your home directly without any outside involvement, making the whole process much easier.