Foreclosure

Question 1

Default

Answer 1

Mortgagee must foreclose by proper judicial action

Question 2

Deficiency in Foreclosure Action

Answer 2

Mortgagee brings a deficiency judgment against debtor

Question 3

Surplus From Action

Answer 3

Junior liens are paid in order of priority, then surplus is given to debtor

Question 4

Effects of Foreclosure on Various Interests

Answer 4

Foreclosure terminates interest junior to mortgage being foreclosed, junior liens can no longer look to property to satisfy debt. HAS NO AFFECT ON SENIOR mortgages

Question 5

Necessary Parties

Answer 5

Those with interest subordinate to those foreclosing AND debtor

Question 6

Failure to Include Necessary Parties

Answer 6

Results in the preservation of that party’s claim despite the foreclosure and sale (his mortgage remains on the land)