REF - Chapter 10 - Defaults & Foreclosures

A forebearance in a note is known as a...?

Moratorium

A sellers attempt to sell their property whereby the liens are greater than the value of the property is known as a...?

Short sale

When an owner leaves their property without any just cause, the owner is said to have ...........the property?

abandoned

Default

failure to fulfill an obligation, especially to repay a loan or appear in a court of law.

Deficiency Judgment

A judgement given by a court when the value of security pledged for a loan is insufficient to pay off the debt of the defaulting borrower.

Mechanic's Lien

A lien created by statute which exists against real property in favor of persons who have performed work or furnished materials for the improvement of the real property.

The mortgagor is the...?

Borrower

??? is a governmental loan modification program...?

HAMP

An acceleration clause is included in which of the following?

The promissory note

A deed in lieu of foreclosure is an example of...?

Voluntary conveyance of deed

A judicial foreclosure is required when a ??? is used.

mortgage

Under an FHA loan, default occurs after ???? Of non payment by the borrower?

2 months

Acceleration Clause

A condition in a real estate financing instrument giving the lender the power to declare all sums owing lender immediately due and payable upon the happening of an event, such as sale of the property, or a delinquency in the repayment of the note.

A non-judicial foreclosure may be used in a...?

Deed of trust

If a property is sold at a foreclosure auction for an amount less than the amount of outstanding debt ok the property, the lender may file for a...?

Deficiency Judgement

(T or F) A non-judicial foreclosure is typically quicker to execute than a judicial foreclosure.

True

Short sales typically occur when a property is said to be...?

Underwater

A deed to real property accepted by a lender from a defaulting borrower to avoid the necessity of foreclosure proceedings by the lender is known as a...?

deed in lieu of foreclosure

In a ??? the court establishes a specific date for the defaulted amount to be paid.

strict foreclosure