Section 10, Unit 2: Foreclosures, Deficiencies, and Tax Implications

What happens after a lien foreclosure sale if not enough money were made from the auctioning of the property to pay off the lien holders?

A deficiency judgment against the property owner for the outstanding balance to the lien holders is issued.

Which process temporarily stalls foreclosure?

Filing for Chapter 7 bankruptcy

Which of the following best describes the function of a deficiency judgment in the case of a foreclosure?

It allows the lender to recover losses incurred in the foreclosure process.

How long does a homeowner have to pay off outstanding liens against his property?

Until the foreclosure sale is held

Chapo's property was foreclosed on and he is facing a deficiency judgment so the lender can recover losses incurred from the foreclosure process. What type of lien may the lender levy against Chapo until the losses are paid?

Blanket lien

Which of the following statements best describes a foreclosure by advertisement?

Notification of pending auction, public auction, notice of eviction

Robbie's lender notified him of an impending foreclosure, and told Robbie that his property will be sold at public auction. After the auction occurred, he receives a notice of eviction for which the lender had to petition a court. What does this describe?

Foreclosure by advertisement

Lendright Home Loans asked a trustee to begin foreclosure proceedings as permitted by the power-of-sale clause in the security instrument. This action does not need to involve the courts. What type of foreclosure process is being used?

Non-judicial foreclosure

A mortgage with a clause that prohibits the lender from suing the borrower for unpaid amounts if foreclosure occurs is called a ______ mortgage.

Non-recourse

Which of the following best describes foreclosure by entry and possession?

Petition to enter, repossession, notice of eviction