In what type of foreclosure does a lender give a borrower a notice of default in a form prescribed by the state?

In non-judicial foreclosure, the lender initiates the process without court intervention, following a series of statutory procedures. One of these steps typically includes sending a notice of default to the borrower, which is prepared according to the specific requirements set by the state. This type of foreclosure is commonly used in states that allow lenders to bypass the court system to expedite the process of reclaiming property when a borrower defaults on a loan.

Non-judicial foreclosure is often quicker than judicial foreclosure because it does not require lengthy court proceedings, making it a more efficient option for lenders who want to protect their investment. The notice of default serves as an official document that informs the borrower of their default status and outlines the potential consequences if the debt is not resolved.

Understanding this process helps homeowners recognize their rights and the steps involved in foreclosure, as well as the distinctions between different types of foreclosure methods.