The difference between Judicial and non-Judicial is relatively simple, but an important and often misunderstood part of the foreclosure process. We aree encountering a lot of confusion among agents and homeowners about this issue, so here’s some clarification.
A Judicial state requires a judicial review of the foreclosure case before it can be officially processed. The foreclosure process actually begins by filing a Lis Pendens (a law suite pending) document in a court of law. Following are the states that require judicial review: Connecticut, Delaware, Florida, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Nebraska, New Jersey, New Mexico, New York, North Dakota, Ohio, Pennsylvania, South Carolina, and Vermont.
In Non-Judicial states, lenders or trustees file a Notice of Default with the county recorder’s office to commence the foreclosure process, and the process does not need to go through the courts. These states include Michigan, New Hampshire, Tennessee, Utah, Washington D.C., and West Virginia.
The remaining 25 states allow both judicial and non-judicial foreclosure, though some have tendencies toward one practice or the other.
For some additional clarification, Thomas Lawler, former director and senior vice president at Fannie Mae, recently provided this informative explanation in a post for The New York Times:
Some states allow both judicial and non-judicial foreclosures.  And in some states, judges have enormous discretion as to how to handle a foreclosure.  In many judicial states, foreclosures can be challenged, and such challenges have increased drastically.
An informed Realtor can advise a client that is at risk of losing your home to foreclosure and may be able to help you sell your home and not go into foreclosure. If you know anyone that may need my help give us a call and see if we can help your friends, family members or associates. I am a Certified Distressed Property Expert and we know we can help you discover your best option.