Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Real Estate L53
Foreclosure & Redemption
| Question | Answer |
|---|---|
| if the amount received from the sale exceeds the borrower’s debt, the lender profits. | Strict foreclosure |
| the lender is required to refund to the borrower any profit realized on the sale of the foreclosed property. | foreclosure by sale |
| If the lender is unable to recover his full interest in the collateral property, he may, in some states, be permitted to seek a ? against the borrower in order to recover the remaining debt. | deficiency judgment |
| The deficiency judgment allows the lender to attach and seize the borrower’s ? to make up the difference between the amount realized at the foreclosure sale and the borrower’s remaining outstanding obligation. | unsecured personal and real property |
| if the buyer has acquired the property “subject to” an existing mortgage he (can/can not) have a deficiency judgment entered against him. | can not |
| foreclosure type and clause that means the property can be sold without the necessity of going through the court action of a foreclosure. | Deed of Trust Foreclosure; "power of sale” clause |
| The ? is the most common form of sale foreclosure. | deed of trust |
| In Deed of trust foreclosure, The ? notifies the ? in writing of the delinquency of the trustor/borrower and instructs the trustee to start foreclosure proceedings. | lender/beneficiary; trustee |
| A ? day notice is forwarded to the trustee and the sale is advertised in the newspaper in Deed of Trust Foreclosure. | 90, |
| Who can bring the loan up to date with payment of delinquent payments plus accrued collection costs, delinquency fees, etc. in Deed for trust foreclosure | The trustee or any junior lien holders |
| 3 types of Mortgage Foreclosure | 1. Sale with Appraisement 2. Sale without Appraisement 3. Deed in Lieu of Foreclosure - In Louisiana, this process is called dation en paiement. |
| Louisiana permits this type of foreclosure. If the property does not sell for the full amount owed, the creditor may obtain a deficiency judgment for the amount owed by the borrower above the proceeds of the sheriff’s sale. | Sale with Appraisement |
| with Sale with Appraisement, the debtor has the right to bid for the property at ? only if the bid equals at least ? of the appraised value. | Sherriff Sale ; 2/3 |
| Mortgage Foreclosure when no appraisal has been made and the lender forfeits the right to obtain a deficiency judgment. | Sale without Appraisement |
| Under this type of MTG foreclosure, the borrower, “sells” the property to the lender in return for the lender canceling the note. The lender does not retain the right of a deficiency judgment if the property sells for less than the borrower owed. | Deed in Lieu of Foreclosure * In Louisiana, this process is called dation en paiement. |
| ? is much quicker Foreclosure because it does not have to go through the judicial process. It already includes a waiver of notice, that is, the legal delay of foreclosure have been waived. | Executory process |
| Foreclosure may take place by either ? OR ? | ordinary process or executory process. |
| If the borrower’s property is in foreclosure, he may elect to redeem it in one of two possible ways, depending on the practice of his own state. | Borrower's Right of Redemption |
| Right of redemption that occurs during the period of time after the borrower goes into default but before the actual foreclosure sale. During this period, the borrower, or other lien holder, can redeem the property by paying the current indebtedness. | Equitable redemption |
| Under Equitable redemption If the mortgage contains an ?, the entire debt may have to be paid in order to redeem the property. | acceleration clause |
| borrower may have up to two years to redeem his property by paying off the debt in full, and he may be permitted to remain in possession of the property. | Statutory rights of redemption |
| Statutory rights of redemption - occurs [before/after] the actual foreclosure sale. | after |
| During this period, the court may appoint a receiver to pay operating costs, collect rents, and otherwise look after the property. The time limit for statutory redemption varies from state to state. | Borrower's Right of Redemption |
| Borrower's Right of Redemption: In Louisiana there is no statutory redemption except for tax sales which is ? | 3-5 years.. |
| Foreclosure by ? is referred to as non-judicial foreclosure. The borrower is allowed only a period of reinstatement, extending only to the time the property is sold. | power of sale |
| PARTIES: MORTGAGE TRUST DEED | Mortgagor & Mortgagee Trustor, Beneficiary, & Trustee |
| SECURITY AGREEMENT: MORTGAGE TRUST DEED | Mortgage Deed in Trust (may require a lien, title, or mixture) |
| DEFAULT PROVISION: MORTGAGE TRUST DEED | Equitable Right of Redemption Equitable or Statutory Rights Statutory Rights in some states of Redemption depending on state |
| DEFAULT : MORTGAGE TRUST DEED | Court Foreclosure; deficiency Power of Sale or Judicial Foreclosure |
| REMEDY : MORTGAGE TRUST DEED | Judgments allowed in some states Deficiency judgments in some states. |
| RELEASE OF: MORTGAGE TRUST DEED | Via "release of mortgage". Via "reconveyance" or "deed of reconveyance: |
| COLLATERAL: MORTGAGE TRUST DEED |
Created by:
bvennen