Foreclosure Flashcards

1
Q

What are the three types of foreclosure

A

Judicial
Non-Judicial (aka foreclosure by advertisement)
Strict (Judicial without an auction - not a lawsuit)

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2
Q

definition of “Lis Pendens”

A

the notice of a pending lawsuit in a judicial foreclosure.

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3
Q

What foreclosure type does not include a sheriff’s auction?

A

Strict foreclosure.
Judicial may or may not.

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4
Q

The period of time between the second notice of a foreclosure and the sheriff’s auction is called…

A

Equitable redemption period

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5
Q

definition of equitable redemption period

A

Period between 2nd notice of foreclosure and auction where mortgagee can pay miss payments and end foreclosure proceedings

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6
Q

Court directed transfer of property from borrower to lender without auction is…

A

Strict foreclosure

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7
Q

Alternatives to Foreclosure

A

Deed in lieu of foreclosure
Short Sale

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8
Q

Definition of Deed in Lieu

A

Owner just hands keys over to the lender without foreclosure proceedings.
Lender does not have to accept. It does not void other liens

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9
Q

definition of short sale

A

seller negotiates with the lender to accept less than the loan balance.

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10
Q

Definition Contract for Deed

A

Seller financing
Buyer pays in installments
Buyer has equitable title (rights to use property)
Seller holds the title till paid
Default = cancellation. Seller keeps all money & title.

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11
Q

Difference between Contract for Deed and Purchase Money Mortgage

A

If buyer defaults:
Contract for Deed - Seller just cancels. Keeps money, keeps title. Low risk.
Purchase Money Mortgage - only option is

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