Chapter 21: Foreclosure

Question 1

Absent an agreement between the mortgagor and mortgagee, in which of the following states is a mortgagee NOT entitled to take possession of the real property after default and prior to foreclosure?

A. Any state
B. A title theory state
C. An intermediate title state
D. A lien theory state

Answer 1

D. A lien theory state

Question 2

FILL IN THE BLANKS. __________ a foreclosure sale, the __________ may __________ clear title to the property under the doctrine of equity of redemption by paying the full debt plus any accrued interest.

A. After, mortgagee, waive
B. Prior to, mortgagor, reclaim
C. After, mortgagee, reclaim
D. Prior to, mortgagor, waive

Answer 2

B. Prior to, mortgagor, reclaim

Question 3

True or False?
A valid foreclosure terminates any interest in the foreclosed property that is junior to the interest being foreclosed.

Answer 3

True

Question 4

True or False?
A purchase-money mortgage does not have priority over mortgages and liens created prior to the purchaser’s acquisition of the property.

Answer 4

False

Question 5

True or False?
Absent assertion of a statutory right of redemption by the mortgagor, the purchaser of property at a foreclosure sale takes the property free and clear of any junior mortgage and subject to any senior mortgage.

Answer 5

True

Question 6

True or False?
A statutory redemption nullifies the foreclosure sale and restores title to the mortgagor.

Answer 6

True

Question 7

True or False?
A purchaser who buys property at a foreclosure sale takes the property subject to any junior mortgage.

Answer 7

False