Chapter 15 Foreclosure Flashcards
After a borrower has given a mortgage of real property, the borrower’s remaining interest is described at law as:
(1) a right of foreclosure.
(2) a common law mortgage.
(3) the equity of redemption.
(4) None of the above.
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A lender who is foreclosing may ask the court to appoint a receiver where the property being foreclosed is:
(1) a large residential apartment building.
(2) a single-family dwelling with a tenant occupying it.
(3) a single-family dwelling abandoned by the borrower.
(4) any one of the above.
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After an order nisi of foreclosure is granted to a petitioner and the respondent borrower fails to pay the amount due as required by the order, the petitioner may apply for:
(1) an order absolute of foreclosure.
(2) a judicial sale.
(3) an equitable charging order.
(4) either (1) or (2).
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The following statements concern the rights and preferences of the petitioner and respondents in a foreclosure. Which of these statements is FALSE?
(1) If the value of the property is less than the amount of mortgage debt owed to the petitioner, the mortgagor would want the property to be foreclosed, while the petitioner would want the property to be sold in a judicial sale.
(2) Where the value of the property exceeds the total amount of mortgages, the respondents would want a judicial sale, but the petitioner would prefer the property to be foreclosed.
(3) Where the court orders a judicial sale, the petitioner may make an offer, and if the court approves the offer, the petitioner will become registered owner, and still be able to sue the mortgagor for any shortfall between the sale price and the mortgage debt.
(4) Where the value of the property being foreclosed exceeds the total amount of the mortgages, both the petitioner and the respondents will desire a judicial sale of the property.
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The Court Order usually obtained first in a foreclosure action is an:
(1) Order Nisi.
(2) Order Absolute.
(3) Order for Sale.
(4) Order for Specific Performance.
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In the absence of a priority agreement, which of the following would NOT be named as respondents in a foreclosure action?
(1) the borrower
(2) a buyer from the borrower under an agreement for sale
(3) a guarantor
(4) prior mortgage lenders
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