real estate finance - full book (500 pgs)

Monthly payments on a thirty year 100000 loan at

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Unformatted text preview: S 1 DAY Notice of Sale Publishing Trustee’s Sale JUDICIAL FORECLOSURE /MORTGAGE FORECLOSURE Although mortgages are rarely used in California, it is important to understand its foreclosure procedure. 14-42 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 14: THE LOAN PROCESSING A mortgage is foreclosed by initiating a court action for judicial foreclosure, unless it explicitly includes a power–of–sale clause, as appears in a trust deed, which eliminates the need for a judicial action. EQUITABLE REDEMPTION (REINSTATEMENT RIGHTS) RIGHT OF EQUITABLE REDEMPTION/REDEMPTION PERIOD The most significant difference between a mortgage and a trust deed sale is that there is no right of redemption following a trustee’s sale. The sale is absolutely final, and the purchaser can take possession immediately. However, if the former owner refuses to vacate the premises, an unlawful detainer is the legal action by which the court orders the sheriff to evict the present occupant. The purchaser at a trustee’s sale must also take such an eventuality into account. While, under a judicial foreclosure, a borrower may cure the default and reinstate the loan any time before the entry of judgment by paying the delinquencies plus costs and fees. This immediately stops the foreclosure proceedings, and the loan continues in full force and effect as though no acceleration had taken place. A mortgagor has up to one year to redeem following court foreclosure; called “Equity of Redemption.” DEFICIENCY JUDGMENT (NOT AVAILABLE IN TRUSTEE’S SALE) Under limited circumstances, the lender may get a judgment against the borrower if the property is sold at the court foreclosure sale for less than what is owed on the loan. A deficiency judgment is the deficient difference between the money that a property brings at a court foreclosure sale and the amount owed on the property. If a home was sold at a court foreclosure sale for $217,000 and $240,000 was owed on the property, a lender woul...
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