Ch 17 Foreclosure Flashcards
What are the two types of Foreclosure?
Judicial and Statutory
What is Judicial foreclosure mostly used for residential/commercial foreclosures?
Commercial
How long of a process is judicial foreclosure in AR?
120-180 days
A recorded mortgage is/is not a requirement for judicial foreclosure?
is not
The statute of limitations for judicial foreclosure is ___years from the maturity date of the promissory note—but only if the __________ _________ is in the mortgage.
5
maturity date
What does judicial foreclosure begin with?
Begins with filing a complaint for foreclosure.
What type of judgement(s) do you want to request in a judicial foreclosure?
Want to ask for both an in rem (against the property) and in personam (against the person) judgement
When would a receiver be requested in a judicial foreclosure?
When the complaint is filed
In a judicial disclosure, what do you get if you prevail?
A decree of foreclosure
In Arkansas, after a decree of (judicial) foreclosure, what are some rules around sale of the property?
(1) must file a notice with the clerk’s office, with a 10 day notice and published
(2) price cannot be low enough as to shock the conscience
In a judicial foreclosure, when is redemption available?
Redemption is available a year from the sale.
How would a good lawyer for the bank get around redemption after a judicial foreclosure?
A good lawyer for the bank would put a waiver of redemption clause in the original agreement.
When is statutory foreclosure most commonly used?
For residential purposes
A statutory foreclosure is prohibited for ____________ property.
agricultural
What must a lender have for a statutory foreclosure?
A lender must have a recorded mortgage.
In a statutory foreclosure, how much notice must be given to the debtor before filing a notice of default.
10-days
During a statutory foreclosure, what must be filed in the real estate records?
Notice of default and intent to sell.
In a statutory foreclosure what must be mailed to the debtor and any parties with subsequent interest?
Notice of default and intent to sell
Are there deficiency judgements in statutory foreclosure?
no
In statutory foreclosure how long can you bring a separate actions after the sale?
12 months
In statutory foreclosure how are dxefincieny judgements calculated?
it cannot exceed the lesser of the total debt minus the FMV of the property OR the total debt minus the foreclosure sale price.
In statutory foreclosure you must wait at least __ days from the recording of the notice.
60
In statutory foreclosure you publish by…
putting it in a newspaper of general circulation once a week for 4 weeks and put it online.
In statutory foreclosure the sale minimum bid must…
exceed 2/3 of the amount of the outstanding debt
