Foreclosure

Absent an agreement between the mortgagor and mortgagee, in which of the following states is a mortgagee NOT entitled to take possession of the real property after default and prior to foreclosure? A Any state B A title theory state C An intermediate title state D A lien theory state

A lien theory state

Which of the following statements regarding the priority of mortgage interests is FALSE? A A junior mortgage that satisfies the requirements of the state recording act may take priority over the unrecorded senior mortgage. B A senior mortgagee can agree to subordinate its interest to a junior mortgagee. C A purchase-money mortgage does not have priority over mortgages and liens created prior to the purchaser's acquisition of the property. D A valid foreclosure terminates any interest in the foreclosed property that is junior to the interest being foreclosed.

A purchase-money mortgage does not have priority over mortgages and liens created prior to the purchaser's acquisition of the property.

Which of the following statements regarding the effect of foreclosure on various parties is FALSE? A In some states, a mortgagor can reclaim the property after a foreclosure sale. B Absent assertion of a statutory right of redemption by the mortgagor, the purchaser of property at a foreclosure sale takes the property free and clear of any junior mortgage and subject to any senior mortgage. C A statutory redemption nullifies the foreclosure sale and restores title to the mortgagor. D A purchaser who buys property at a foreclosure sale takes the property subject to any junior mortgage.

A purchaser who buys property at a foreclosure sale takes the property subject to any junior mortgage.

FILL IN THE BLANKS. __________ a foreclosure sale, the __________ may __________ clear title to the property under the doctrine of equity of redemption by paying the full debt plus any accrued interest. A After, mortgagee, waive B Prior to, mortgagor, reclaim C After, mortgagee, reclaim D Prior to, mortgagor, waive

Prior to, mortgagor, reclaim