What is a non-judicial foreclosure?
A non-judicial foreclosure is a foreclosure done without a court case. The lender, or a trustee acting for it, sends the written notices required under the power-of-sale clause in your mortgage or deed of trust, and then the home is sold at auction.
Most states allow it, the CFPB says. The other route, judicial foreclosure, goes through a court, where you can raise defenses.
Updated
Where you’ll see the word
-
Your deed of trust
The document with the power-of-sale clause.
-
A trustee's notice
The notice of default or notice of sale a trustee sends or records: the required written steps before the auction.
-
Our state foreclosure law pages
Each state's page says whether lenders there foreclose through a court, without one, or both.
You might see it called
What a non-judicial foreclosure means for you
Without a court case, a judge usually doesn't look at the file before the sale, so the notices are your warning. Colorado is one exception: a court has to authorize its public trustee sales. The first required notice says what step the lender or trustee has taken. The CFPB's advice is to read every legal notice carefully and act promptly on it.
The steps and their timing come from your state's law, and they differ by state: how many notices, how far apart, and how the sale is announced. Our state foreclosure law pages have each state's rules.
Federal loss mitigation rules apply on this route too. For many covered loans, a complete application to your mortgage company, sent early enough, holds the first notice and the sale while you're reviewed.
Questions about non-judicial foreclosure
Who conducts a non-judicial foreclosure sale?
A trustee, in states that use deeds of trust. The CFPB says it's common to vest the security interest in a third-party trustee, and the document that gives the trustee the power of sale is called a deed of trust.
Does a power-of-sale clause mean the lender can take the home right away?
No. The clause is permission to sell without a court case. The required written notices and the auction still have to happen first.
What does the notice of sale tell me?
The date, time and place of the auction, and the property being sold. It's the notice that sets the sale date.
Free help understanding your options
Housing counselors approved by the U.S. Department of Housing and Urban Development work at nonprofit agencies. The Consumer Financial Protection Bureau describes free foreclosure-avoidance counseling, including help with mortgage-company conversations and available options Source CFPB.
-
HUD-approved housing counselors
Our help directory lists 1,010 agencies approved for foreclosure counseling, by state.
-
Legal aid
Nonprofit law offices give free civil legal help to people with low incomes. Our help directory lists the 120 offices the Legal Services Corporation funds.
Our pages that use it
- How foreclosure works →The court route and the power-of-sale route, step by step.
- State foreclosure laws →The rules that apply in your state.
Related terms
- Judicial ForeclosureA foreclosure process filed and decided in court before a sale.
- Foreclosure SaleThe public auction where a home is sold at the end of a foreclosure. The highest bidder, which can be the lender, gets the home.
- Notice of DefaultA formal notice stating that the borrower is in default under a mortgage.
- Power of SaleA clause in a mortgage or deed of trust that authorizes a nonjudicial foreclosure sale.
Sources and method
This page uses none of our own data. Its facts come from the Consumer Financial Protection Bureau's foreclosure explainer, its Obduskey court brief and Regulation X, each opened on Oct 22, 2026.
- Colorado Judicial Branch · Residential foreclosures, at coloradojudicial.gov
- Consumer Financial Protection Bureau · How does foreclosure work? at consumerfinance.gov
- Consumer Financial Protection Bureau · Regulation X loss mitigation procedures, at consumerfinance.gov
- Consumer Financial Protection Bureau · Obduskey amicus brief, at files.consumerfinance.gov
We write with assistance from AI tools. Figures come from the data and sources named on this page.