| Question Answer | In what type of foreclosure is the lender required to file suit asking a court to order the borrower to pay the mortgage debt by a certain date or the lender will automatically gain full title to the property? Strict |
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In what type of foreclosure does a lender give a borrower?
When a lender uses
the nonjudicial foreclosure process
against a borrower who fails to pay on a mortgage for his or her primary residence, the lender gives up the right to collect a deficiency judgment against the borrower. But most lenders prefer this process anyway because it is much faster and less costly.
Which type of foreclosure involves sale of the mortgage property under court supervision?
Foreclosure by judicial sale, commonly called judicial foreclosure
, involves the sale of the mortgaged property under the supervision of a court. The proceeds go first to satisfy the mortgage, then other lien holders, and finally the mortgagor/borrower if any proceeds are left.
In what type of foreclosure does a lender give a borrower a notice of default in a form prescribed by the State quizlet?
In what type of foreclosure does a lender give a borrower a notice of default in a form prescribed by the state? a proceeding to enforce a lien by forcing sale or transfer of a secured property.
non-Judicial foreclosure
.
What provision is required in a mortgage to allow a non-judicial foreclosure to force a sale without a foreclosure suit?
What provision is required in a mortgage to allow a non-judicial foreclosure to force a sale without a foreclosure suit?
A power of sale clause
. – In a strict foreclosure, a lender takes title to the liened property directly.
Which type of foreclosure involves a court-ordered transfer?
| Question Answer | Which type of foreclosure involves a court-ordered transfer of the mortgaged property to the lender? Strict | A property is secured by a mortgage that does not contain a “power of sale” clause. To foreclose, the lien holder will have to file a foreclosure suit. |
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What are the 3 types of types of foreclosure processes to enforce mortgage liens?
- Strict Foreclosure. …
- Non-Judicial Foreclosure. …
- Judicial Foreclosure.
What document contains language that gives the trustee the right to foreclose and sell the property in the event of default?
A security instrument
collateralizes a property so that it acts as security for a loan, and gives the lender the right to foreclose in the event of default. A security instrument may be either a mortgage or a deed of trust.
Who must approve a judicial foreclosure?
Under federal law, in most cases,
the bank
must wait until you are more than 120 days delinquent in payments before starting a foreclosure, no matter if it is judicial or nonjudicial. The bank sends a letter notifying you of its intent to begin foreclosure.
What is the first item to be paid out of foreclosure funds?
The money paid by the highest bidder is distributed as follows:
The costs of the sale and the debt owed to the foreclosing mortgagee
are paid first. The mortgagee’s only interest in the property is to be fully repaid, however, so if any money is left over, the mortgagee doesn’t get to keep it.
Which of the following allows a mortgagee to proceed to a foreclosure sale without going to court first?
Which of the following allows a mortgagee to proceed to a foreclosure sale without going to court first? The answer is
POWER OF SALE
. A power-of-sale provision in a mortgage permits the lender to foreclose and sell a mortgaged property that is in default without petitioning to get the court to conduct the sale.
Which of the following is a common consequences suffered by a mortgagor in a foreclosure procedure?
Which of the following is a common consequence suffered by a mortgagor in a foreclosure procedure?
The lender will require the borrower to do a certain number of hours of community service. The borrower’s credit is damaged for a significant period of time
.
How long does a non judicial foreclosure take?
It takes several months for a lender to foreclose on a California property. If everything goes according to schedule, the process typically takes
approximately 120 days
— about four months — but the process can take as long as 200 or more days to conclude.
Do you get any money if your house is foreclosed?
Generally,
the foreclosed borrower is entitled to the extra money
; but, if any junior liens were on the home, like a second mortgage or HELOC, or if a creditor recorded a judgment lien against the property, those parties get the first crack at the funds.
What is the minimum amount of time a notice of sale must be posted on a property before the foreclosure sale can take place?
Civ. Code § 2924). The notice of sale will be: posted at the property and in a public place in the city where the property is to be sold at least
20 days before
the sale date.
When a lender on a loan in default is forced to go to court and request an order of foreclosure this is called?
When a lender on a loan in default is forced to go to court and request an order of foreclosure, this is called:
Comeuppance
.
