Foreclosure Flashcards
1
Q
Default
A
Mortgagee must foreclose by proper judicial action
2
Q
Deficiency in Foreclosure Action
A
Mortgagee brings a deficiency judgment against debtor
3
Q
Surplus From Action
A
Junior liens are paid in order of priority, then surplus is given to debtor
4
Q
Effects of Foreclosure on Various Interests
A
Foreclosure terminates interest junior to mortgage being foreclosed, junior liens can no longer look to property to satisfy debt. HAS NO AFFECT ON SENIOR mortgages
5
Q
Necessary Parties
A
Those with interest subordinate to those foreclosing AND debtor
6
Q
Failure to Include Necessary Parties
A
Results in the preservation of that party’s claim despite the foreclosure and sale (his mortgage remains on the land)
