Foreclosure

Question 1

The court’s writ of execution…

Answer 1

authorizes an official to seize and sell the foreclosed property.

Question 2

What are the 3 types of foreclosure?

Answer 2

Judicial Foreclosure
Non-judicial Foreclosure
Strict Foreclosure

Question 3

What happens when a loan is accelerated?

Answer 3

Full payment is due

Question 4

right of redemption

Answer 4

the right to reclaim a property that has been foreclosed by paying off amounts owed to creditors

Question 5

right of reinstatement

Answer 5

is available when the borrower wants to cure the default (bring payments up to date) and reinstate the loan as if the loan had not been accelerated at all

Question 6

lis pendens

Answer 6

gives public notice that the mortgaged property may soon have a judgment issued against it

Question 7

equitable vs. statutory right of redemption

Answer 7

equitable - the right to redeem between default and final foreclosure sale
statutory - the right to redeem during a period of time (up to a year) following the foreclosure sale

Question 8

deficiency judgment

Answer 8

enables the lender to attach and foreclose a judgment lien on other real or personal property the borrower owns

Question 9

“power of sale” clause

Answer 9

enables the mortgagee to order a public sale without court decree

Question 10

What type of foreclosure uses a power of sale clause?

Answer 10

Non-judicial foreclosure

Question 11

Alternatives to foreclosure

Answer 11

deed in lieu of foreclosure

short sale

Question 12

deed in lieu of foreclosure

Answer 12

transfers legal title to the lienholder

Question 13

short sale

Answer 13

lender allows a borrower in default to sell the mortgaged property for less money than necessary to satisfy the loan