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SCC REA 201 > Foreclosure > Flashcards

Flashcards in Foreclosure Deck (27)
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1
Q

Deed in Lieu of Forclosure

A

A mutual agreement in which the borrower is released from liability under the terms of the loan in exchange for a quitclaim deed or a regular grant deed

2
Q

Forebearance

A

An agreement that effectively forestalls or delays foreclosure action

3
Q

Foreclosure

A

A procedure that removes an owner’s property rights; when real property is pledged as security for a loan, process of selling that property because borrower defaulted

4
Q

Grant Deed

A

Deed that contains two guarantees; grantor states that property has not been sold, and state the property is not burdened by encumbrances apart from those already disclosed to the buyer

5
Q

Loss Mitigation

A

Negotiation of mortgage terms between lender and borrower that prevent foreclosure

6
Q

Quitclaim Deed

A

A deed to relinquish any interest in property that the grantor may have, but implying no warranties

7
Q

Short Sale

A

A situation in which the lender agrees to accept a payoff-in-full amount less than the outstanding balance of the loan

8
Q

Affidavit of Completion of Forfeiture

A

A written statement recorded by a vendor that terminates a buyer’s interest when the buyer defaults on a land contract

9
Q

Certificate of Sale

A

A document issued to the highest bidder at a judicial foreclosure sale

10
Q

Deficiency Judgment

A

A judgment against the defaulting mortgagor for the difference between the indebtedness and the sale price through a foreclosure sale

11
Q

Equity of Redemption Period

A

Right to redeem property during the foreclosure period

12
Q

Forcible Detainer Action

A

Expedites eviction of the borrower

13
Q

Forfeiture Clause

A

Loss of money or anything of value due to failure to perform under a contract

14
Q

Judicial Foreclosure

A

A foreclosure action taken through the filing of a lawsuit

15
Q

Land Contract

A

Also known as an agreement for sale or a contract for deed, it is an executory contract, in as much as the terms have not been fulfilled

16
Q

Lis Pendens

A

A recorded legal document that gives constructive notice that an action affecting a particular piece of property has been filed in a state or federal court

17
Q

Nonjudicial Foreclosure

A

The foreclosure and sale of property without resorting to court action

18
Q

Notice of Default

A

A notice that is recorded in the county recorder’s office stating that a trust deed is in default and that the holder has chosen to have the property sold

19
Q

Notice of Election to Forfeit

A

A notice recorded by the seller at the end of the reinstatement period of a breached land contract

20
Q

Notice of Reinstatement

A

A notice recorded by the seller if the buyer cures the default during the 20-day period after the filing of the notice of election to forfeit

21
Q

Period of Reinstatement

A

90-day period from the notice of default, during which a borrower may reinstate the loan secured by a deed of trust by making all back payments plus costs and bringing the loan current, but is not required to pay off the entire loan balance

22
Q

Power of Sale Clause

A

Clause in a deed of trust that allows the trustee to conduct a foreclosure sale without first going to court

23
Q

Reinstatement Period

A

A right available to anyone under an accelerated promissory note secure by a deed of trust or mortgage on property. Debtor has up to 3 months to pay off amount in arrears including all costs curing the default without additional penalty

24
Q

Sheriff’s Deed

A

After the statutory period of redemption, the successful bidder at a judicial foreclosure receives this deed and may take possession of the property

25
Q

Sheriff’s Sale

A

A sale ordered by the court in which a sheriff or county official has the legal right to sell a distressed or foreclosed property

26
Q

Statutory Period of Redemption

A

Period after the sale during which the landowner could redeem the property

27
Q

Trustee Deed

A

The deed issued by the trustee after the foreclosure and sale of property under a deed of trust

Decks in SCC REA 201 Class (75):