Foreclosure Flashcards
What are the three types of foreclosure
Judicial
Non-Judicial (aka foreclosure by advertisement)
Strict (Judicial without an auction - not a lawsuit)
definition of “Lis Pendens”
the notice of a pending lawsuit in a judicial foreclosure.
What foreclosure type does not include a sheriff’s auction?
Strict foreclosure.
Judicial may or may not.
The period of time between the second notice of a foreclosure and the sheriff’s auction is called…
Equitable redemption period
definition of equitable redemption period
Period between 2nd notice of foreclosure and auction where mortgagee can pay miss payments and end foreclosure proceedings
Court directed transfer of property from borrower to lender without auction is…
Strict foreclosure
Alternatives to Foreclosure
Deed in lieu of foreclosure
Short Sale
Definition of Deed in Lieu
Owner just hands keys over to the lender without foreclosure proceedings.
Lender does not have to accept. It does not void other liens
definition of short sale
seller negotiates with the lender to accept less than the loan balance.
Definition Contract for Deed
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.
Difference between Contract for Deed and Purchase Money Mortgage
If buyer defaults:
Contract for Deed - Seller just cancels. Keeps money, keeps title. Low risk.
Purchase Money Mortgage - only option is