4:Foreclosure and Short sale
In a judicial foreclosure state, what clause allows a lender to declare the entire loan balance due immediately because the borrower defaults?
Acceleration clause
If a lender uses a _____ usually foreclosure is nonjudicial
Deed of trust
If the sale of collateral property through foreclosure does not raise enough to cover the entire loan amount, and other costs, the creditor may be able to obtain a _____________ against the property owner creating a lien against all real and personal property
Deficiency judgement
A bank notifies a homeowner that she is delinquent on her mortgage and threatens foreclosure. The homeowner offers to give the property to the bank if the bank will not file foreclosure suit against her. This is known as
Died in Liu of foreclosure - The deed to the property is given by a borrower to the lender to satisfy the debt and avoid foreclosure
The right to redeem the property prior to the sale is called
Equitable right of redemption
In a lien theory state, what foreclosure process generally must be followed? -actual foreclosure -judicial foreclosure -nonjudicial foreclosure -strict foreclosure
Judicial foreclosure
If a lender uses a _____ usually foreclosure is judicial
Mortgage
Nonjudicial foreclosure is authorized by a ______ clause
Power of sale
What type of clause allows the lender to sell the property to pay the debt the borrower owes without going through the courts?
Power of sale clause
In the event of a default, which that is normally paid first from the proceeds of the foreclosure sale?
Real estate taxes and associated costs of the sale
Allowance to redeem the property after the foreclosure sale
Statutory right of redemption
A way for borrowers to cure the default by bringing the mortgage current—including all accumulated costs and fees—between the time they receive a notice of foreclosure and the time a foreclosure action is filed
Statutory right of reinstatement
What is the first step necessary to kick off a judicial foreclosure proceeding?
The lender files a notice of foreclosure
Which sequence of events BEST represents the step in judicial foreclosure? -Foreclosure action, redemption period, notice of foreclosure, sheriff sale, reinstatement period -foreclosure action, notice of foreclosure, reinstatement period, Sheriff sale, redemption period -Notice of foreclosure, foreclosure action, reinstatement period, sheriffs sale, redemption period -notice of foreclosure, reinstatement period, foreclosure action, redemption period, sheriffs sale
notice of foreclosure, reinstatement period, foreclosure action, redemption period, sheriffs sale
Becca owes $145,000 on her mortgage loan and back property taxes of $5400. The bank foreclosed on the property, selling it for $140,000 At sheriff sale. The cost associated with the proceeding were $1200. If the bank wants to recover the balance of what becca owes, it can -garnish Becca's wages -levy becca's Bank account -seek a deficiency judgment against Becca -sue her in District Court
seek a deficiency judgment against Becca