Foreclosure

Question 1

What are the three types of foreclosure

Answer 1

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

Question 2

definition of “Lis Pendens”

Answer 2

the notice of a pending lawsuit in a judicial foreclosure.

Question 3

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

Answer 3

Strict foreclosure.
Judicial may or may not.

Question 4

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

Answer 4

Equitable redemption period

Question 5

definition of equitable redemption period

Answer 5

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

Question 6

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

Answer 6

Strict foreclosure

Question 7

Alternatives to Foreclosure

Answer 7

Deed in lieu of foreclosure
Short Sale

Question 8

Definition of Deed in Lieu

Answer 8

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

Question 9

definition of short sale

Answer 9

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

Question 10

Definition Contract for Deed

Answer 10

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.

Question 11

Difference between Contract for Deed and Purchase Money Mortgage

Answer 11

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