Chapter 12 Section 4

Question 1

equity of redemption

Answer 1

-the right of a borrower to cure the default before foreclosure rather than lose the property
-the borrower must pay the entire balance of the debt plus any interest and costs that has accrued since the default

Question 2

statutory right of redemption

Answer 2

-the right that allows a borrower to redeem from a foreclosure for a period-of time after a foreclosure sale
-not recognized in florida

Question 3

lis pendens

Answer 3

-“pending litigation”
-giving public notice that the property specified in the filing is the subject of litigation and a judgement lien may later be placed against it

Question 4

deficiency judgement

Answer 4

-any lien holder who is not paid from the proceeds of the foreclosure sale may obtain a deficiency judgement
-a personal judgement against the borrower based on the promissory note
-may be recorded anywhere the debtor may be located and foreclosed against on any real or personal property the debtor may own

Question 5

strict foreclosure

Answer 5

-a form of non-judicial foreclosure, allows a lien holder to take possession of the property after a borrower defaults
-not permitted in florida

Question 6

judicial foreclosure

Answer 6

-requires the lender to bring suit in court to prove default has occurred

Question 7

deed in lieu of foreclosure

Answer 7

-an alternative to a foreclosure sale
-mortgagor who is in default can voluntarily deed a property to a lien holder in lieu of payment of a debt
-lien holder may not be willing to accept the title, however, as they would have to assume liability for any other liens against the property

Question 8

short sale

Answer 8

-a sale transaction in which a seller, confronted with the threat of a foreclosure, enters into a settlement agreement with the lender where the lender consents to a sales price for the property that is below the outstanding loan balance