#1
What is foreclosure?
A legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments
ExplanationLender's legal attempt to recover unpaid loan balance from a defaulting borrower.
#2
Which of the following is NOT a common type of foreclosure?
Friendly foreclosure
ExplanationUncommon type; 'Friendly foreclosure' is not a standard practice in foreclosure proceedings.
#3
In which stage of foreclosure does the property go to auction?
Foreclosure sale
ExplanationProperty is auctioned in the foreclosure sale stage.
#4
Which entity typically conducts a foreclosure sale?
The lender
ExplanationLender is the usual entity conducting a foreclosure sale.
#5
What is the primary purpose of a foreclosure process?
To transfer ownership of the property to the lender
ExplanationForeclosure process primarily aims to transfer property ownership to the lender.
#6
What is a deficiency judgment in foreclosure?
A judgment against the borrower for the difference between the foreclosure sale price and the amount owed on the mortgage
ExplanationLegal ruling holding borrower liable for the shortfall between sale price and mortgage amount in foreclosure.
#7
What is the right of redemption in foreclosure?
The right of the borrower to cure the default and prevent foreclosure
ExplanationBorrower's right to rectify default and halt foreclosure by settling overdue payments.
#8
What is a lis pendens in the context of foreclosure?
A legal notice indicating that a lawsuit is pending regarding the property
ExplanationLegal notice signifying a pending lawsuit related to the property in foreclosure.
#9
What is the role of a trustee in non-judicial foreclosure?
To oversee the foreclosure process on behalf of the lender
ExplanationTrustee oversees foreclosure process for lender in non-judicial proceedings.
#10
What is the 'right to reinstate' in foreclosure?
The right of the borrower to reclaim the property by paying the overdue amount and fees
ExplanationBorrower's entitlement to reclaim property by settling overdue payments and fees in foreclosure.
#11
In a deed in lieu of foreclosure, who transfers the property title?
The borrower to the lender
ExplanationTransfer of property title from borrower to lender as an alternative to foreclosure.
#12
What is the primary difference between recourse and non-recourse loans in foreclosure?
Recourse loans allow the lender to pursue the borrower's other assets in case of default, while non-recourse loans do not.
ExplanationRecourse loans permit pursuit of borrower's assets in default; non-recourse loans do not.
#13
What is the statutory right of redemption?
The right of the borrower to repurchase the property after the foreclosure sale for a certain period
ExplanationBorrower's legal right to repurchase property post-foreclosure sale within a specified timeframe.
#14
In a foreclosure process, what does 'strict foreclosure' refer to?
A foreclosure process that transfers ownership to the lender without a public sale
Explanation'Strict foreclosure' transfers ownership to the lender without a public sale in the foreclosure process.