Unit 4: Foreclosure & Redemption Rights

Question 1

What are the 3 methods of foreclosure?

Answer 1

1. By Judicial
2. By Advertisement
3. Strict

Question 2

If a property uses foreclosure by judicial, what clause is missing in the mortgage?

Answer 2

Power of Sale clause

Question 3

What is the Power of Sale clause?

Answer 3

Gives the lender the right to foreclose without going to court.

Question 4

If a property uses foreclosure by advertisement, what does the mortgage include?

Answer 4

Power of Sale clause

Question 5

What other situation can foreclosure by advertisement be used?

Answer 5

Homeowner’s association assessment liens

Question 6

In a foreclosure by advertisement, the property is advertised and then sold to the highest bidder. How many weeks does the property need to be advertised for?

Answer 6

6 weeks

Question 7

In a foreclosure by advertisement, the property is advertised and then sold to the highest bidder. How many weeks before the sale does a personal notice need to be given to the owner of the property?

Answer 7

4 weeks

Question 8

What method of foreclosure is not used in residential?

Answer 8

Strict foreclosure

Question 9

What is strict foreclosure?

Answer 9

Court orders direct transfer of property from mortgagor to mortgagee without public auction and no statutory redemption period

Question 10

What are the 3 steps in the foreclosure process?

Answer 10

1. Equitable redemption
2. Sheriff’s foreclosure sale
3. Statutory redemption

Question 11

During which period can the mortgagor stop the foreclosure by bringing the loan current and paying all the other fees?

Answer 11

Equitable Redemption Period

Question 12

What happens during the Sheriff’s foreclosure sale process?

Answer 12

The highest bidder is given the certificate of sale or sheriff’s deed.

Question 13

During which period can the mortgagor pay the foreclosure sale price?

Answer 13

Statutory Redemption Period

Question 14

What are the 3 different time frames for the statutory redemption period?

Answer 14

1. 6 months
2. 12 months
3. 5 weeks

Question 15

What is the statutory time period for a foreclosure with more than 1/3 of the mortgage paid off?

Answer 15

12 months

Question 16

What is the statutory time period for a foreclosure of a piece of agricultural property with more than 10 acres.

Answer 16

12 months

Question 17

What is the statutory time period for a foreclosure of a property with more than 40 acres.

Answer 17

12 months

Question 18

If a foreclosed property has evidence of being abandoned by 2 or more police reports of trespassing, how long is the statutory period?

Answer 18

5 weeks

Question 19

T/F A receiver may be appointed during the statutory redemption period to manage the property.

Answer 19

True

Question 20

T/F The holder of a sheriff’s certificate can immediately remove the tenant’s personal property.

Answer 20

False