Deed of Trust Foreclosure (6)

Which of the following is a potential ramification to the seller if a short sale is completed?

A short sale can negatively impact the seller's credit, and the lender may seek a deficiency judgment for the amount not repaid.

In Arizona, foreclosures are usually conducted non-judicially because ______.

Agreement to do so is given by the power-of-sale clause in the deed of trust

ABC Bank in Arizona financed Betty's purchase of a three-bedroom home a few years ago. She kept up with the payments on the loan until a few months ago but is now in default. How will ABC Bank most likely go about initiating the foreclosure process?

Ask the trustee on the deed of trust to record a Notice of Trustee's Sale with the county.

How are creditors holding junior liens on Arizona property paid after a foreclosure sale?

By the trustee, if the proceeds from the foreclosure sale are sufficient

Anna is helping her investor client make an offer on a property that's in the process of foreclosure. How will she best help her client in this situation?

Follow any instructions for making a bid meticulously and make her offer as clean as possible.

Which of these is NOT a part of the process at a trustee's sale in Arizona?

If the lender chooses to bid on the property, no other bid is accepted.

Fairwell Lending must seek the court's permission to foreclose on a property used as collateral for a loan that is in default. What type of foreclosure process is likely being used?

Judicial foreclosure

What happens to any junior liens on the property at a non-judicial foreclosure in Arizona?

Junior liens are extinguished by the sale.

Seller Walt has an agreement for sale with buyer Jessie, who's agreed to buy Walt's property just outside Prescott. Two years later, Jessie defaults on the loan. He's paid Walt $75,000 of the $100,000 purchase price and still owes 25%. Walt is allowed to start forfeiture proceedings ______ after Jessie's first missed payment.

Nine months

What does an Arizona homeowner lose when choosing to use deed in lieu of foreclosure?

Protection from deficiency judgment

When licensees assist sellers with a ______, they should be prepared to provide the lender with a packet of documents for evaluation.

Short sale

Glenn was still living in the house his lender foreclosed on, but he moved out the day after the sheriff's sale. He stayed in a cheap apartment in town, because he hoped to save enough money to redeem his adobe home on a full acre one day. What's the length of the redemption period that Arizona law gives Glenn?

Six months

In a judicial foreclosure in Arizona, who bears responsibility for the foreclosure sale?

The county sheriff

What might prevent an Arizona lender from accepting a borrower's deed in lieu of foreclosure?

The existence of prior or junior liens on the property

An Arizona lender forecloses judicially on a residential property on an urban street. What situation would cause the redemption period after the sale to be shortened to 30 days?

The property was considered abandoned.

Mitzi's foreclosed property was sold at an Arizona trustee's sale. After the sale, she was notified that the lender had filed a deficiency judgment against her. Under what condition can this happen in Arizona?

The subject of the foreclosure was a commercial property.

When proceeds from an Arizona foreclosure sale are applied, which of these parties will be paid after any junior lien holders?

The trustor

An Arizona judicial foreclosure gives junior lien holders which one of these rights?

To pay off all amounts owed to the senior lender and then continue with the foreclosure

An Arizona house was foreclosed on and sold at a trustee sale. The proceeds from the sale exceeded the loan amount, foreclosure process costs, and other liens secured by the property. The excess funds are given to the _____.

Trustor

Bessie's house is being sold as a short sale. She can expect to ______.

Walk away with nothing