Foreclosure Quiz

How long of a grace period do most lenders give a borrower to make a mortgage payment?

15 days

A deficiency judgment can take place when:

A foreclosure sale does not produce sufficient funds to pay a mortgage debt in full.

A judicial foreclosure is also known as:

A sheriff's sale or public auction and is handled through the court system

At times, a lender may offer a loan modification to a distressed homeowner, which is best defined as:

An adjustment of the terms of the loan (interest rate, etc.)

What would be an example of a loan modification?

An interest rate is adjusted lowering the borrower's monthly payment.

A loan assumption:

Can be allowed even if the original loan documents state that it is not a possibility

What are some of the top reasons that people avoid contacting their lender about their financial challenges?

Embarrassment and fear of loss of their property

Sally's home was foreclosed on January 3rd. It is now March 4th and she wants to get her home back. What can Sally do? if her state allows for a statutory right of redemption, she can reclaim the property after the foreclosure as long as she pays any costs associated with the foreclosure. If her state allows for an equitable right of redemption, she can reclaim the property after the foreclosure as long as she pays any costs associated with the foreclosure. If her state allows for a statutory right of redemption, she can reclaim the property after the foreclosure without incurring any type of penalty as long as she begins to make her payments on time. If her state allows for an equitable right of redemption, she can reclaim the property after the foreclosure without incurring any type of penalty as long as she begins to make her payments on time.

If her state allows for a statutory right of redemption, she can reclaim the property after the foreclosure as long as she pays any costs associated with the foreclosure.

Non-judicial foreclosure:

Is more appealing to a lender than a judicial foreclosure

Equitable right of redemption: Is the ability of a lien holder to foreclose on a property Only occurs after the foreclosure sale Only occurs before the foreclosure sale Only occurs after a short sale occurs

Only occurs before the foreclosure sale