CHP 6 - Foreclosure

Question 1

3 types of foreclosure

Answer 1

1) Judicial
2) Non-Judicial
3) Strict (No sale; immediate transfer)

Question 2

2 Rights of Redemption

Answer 2

Equitable (pay and stay until foreclosure completion)

Statutory (pay and stay up to a yr after completion)

Question 3

Statutory right of reinstatement

Answer 3

pay and stay during statutory period b4 lawsuit ends

Question 4

Judicial Foreclosure Sale Proceed Order

Answer 4

cost of sale
special assess taxes
the 1st mortgage
…..

Question 5

When foreclosure doesn’t take care of full balance this is granted

Answer 5

Deficiency judgement

Question 6

Power of Sale provision

Answer 6

Allows lender to foreclose without court decree

Question 7

What type of redemption right is there in non judicial foreclosure

Answer 7

NONE

Question 8

Reinstatement during non judicial foreclosure

Answer 8

during NOD and NOS periods (default and sale)

Question 9

Explain a strict foreclosure

Answer 9

lender gives noticem files paperwork and court orders date by which to pay

Question 10

Short sale

Answer 10

Lender allows property to sale for less than balance. Remainder is usually forgiven

Question 11

KY Foreclosure Laws

Answer 11

1) A Lien Theory State
2) Judicial Foreclosure
3) Registered Statutory right of redemption
4) Deficiency judgement ARE legal

Question 12

KY Redemption period

Answer 12

IF home sells for less than 2/3 of appraised value owner has 6 months to redeem

Question 13

Lis Pendens/ NOtice of Pendency

Answer 13

Public notice that property may soon have a judgement against it

Question 14

A completed foreclosure terminates which equitable right

Answer 14

Equitable redemption rights terminate once foreclosure is completed