Q: What is a nonjudicial foreclosure?
A: A non Judicial foreclosure is when the court is not involved in the lender recovering the property. In some states a deed of trust is held by a 3rd party and when the property is not paid for the lawyer who holds the title will convey the property to the bank upon default. Kentucky is s judicial foreclosure state but you can transfer the property with a deed in lieu of foreclosure or by a short sale. There are few or no advantages to your credit or a tax reason for doing a deed in lieu or a short sale. You still get the 1099 tax debt with a non judicial foreclosure. If you are going to walk away a bankruptcy is better.
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