Liens and Foreclosures Flashcards
Where there is a default on a mortgage in Hawaii:
I. The lender can foreclose without the need of going through judicial proceedings if there is a power of sale clause in the mortgage.
II. After the foreclosure sale, the borrower has a one year statutory right to redeem the property by paying all cash.
A) I. only
B) II. only
C) Both I and II
D) Neither I nor II
A) I Only
I. The lender can foreclose without the need of going through judicial proceedings if there is a power of sale clause in the mortgage.
Non-judicial foreclosure under a power of sale is not frequently used. There is no statutory right of redemption in Hawaii, only an equitable right prior to foreclosure sale.
A mechanic’s lien takes precedence over which of the following?
I. A first mortgage recorded prior to the visible commencement of work
II. A lien for delinquent real property taxes
A) I. only
B) II. only
C) Both I and II
D) Neither I nor II
D) Neither I nor II
Note that the lien does not relate back to start of work
A mechanics lien:
I. Must be filed within 45 days of the date of completion and a copy served upon the owner
II. Will expire in 3 months from the date of the completion unless legal action is taken
A) I. only
B) II. only
C) Both I and II
D) Neither I nor II
A) I Only
I. Must be filed within 45 days of the date of completion and a copy served upon the owner
Must give owner a notice of lien. The lien expires three months after date lien attached (after the probable cause hearing)
The lender wants to assure the priority of his lien. The lender should:
I. Make sure that all other liens are removed from the property being used as a collateral
II. Make sure the borrower has an estate with no liens
A) I. only
B) II. only
C) Both I and II
D) Neither I nor II
C) Both I and II
I. Make sure that all other liens are removed from the property being used as a collateral
II. Make sure the borrower has an estate with no liens
A lender would normally not want to in lend on a fee simple conditional which there were prior liens
When taxes on your property are delinquent:
I. The counties can auction the property after the expiration of three years
II. You have one year to redeem after the tax sale
A) I. only
B) II. only
C) Both I and II
D) Neither I nor II
C) Both I and II
I. The counties can auction the property after the expiration of three years
II. You have one year to redeem after the tax sale
Hawaii mechanics liens which are filed by the suppliers of materials or labor to a construction project are effective as of:
A) The date they were recorded
B) The date work visibly commenced
C) The date the certificate of completion was acquired
D) The date the notice of completion was published
B) The date work visibly commenced
A equitable period of redemption refers to a time within which:
A) A lender can foreclose on a borrower who is in default
B) The debtor can reclaim his property by payment of the debt and costs
C) A prospective purchaser can bid on the property
D) The date the notice of completion was published
B) The debtor can reclaim his property by payment of the debt and costs
If a foreclosure sale proceeds are less than the outstanding debt and foreclosure expenses, which of the following remedies are available.
A) There is no remedy
B) The mortgage must absorb the loss since the mortgager is liable only for foreclosure expenses
C) Owner has the statutory right of redemption
D) Mortgagee may obtain deficiency judgment against the mortgager
D) Mortgagee may obtain deficiency judgment against the mortgager
In a mortgage the lender can establish:
I. The right of redemption
II. The length of statutory redemption period
A) I. only
B) II. only
C) Both I and II
D) Neither I nor II
D) Neither I nor II
These time periods are fixed by law and cannot be waived or made by a lender.
Which of the following is an encumbrance but not a lien:
A) Mortgage
B) Restriction
C) Trust deed
D) Taxes
B) Restriction
A recorded notice of a current law suit involving title to real property is termed
A) A Lis Pendens
B) Actual notice
C) An attachment
D) An order to show cause
A) A Lis Pendens
