Asked by
Jadarius Herrod
on Nov 23, 2024
Verified
Where a first mortgagee completes a foreclosure action
A) it has foreclosed only against the interest of the mortgagor, not any subsequent mortgagee.
B) a second mortgagee has a right of action against the first mortgagee.
C) a subsequent mortgagee loses its rights in the property, and is left only with an action against the mortgagor.
D) the mortgagor receives the equity of redemption.
Foreclosure Action
A legal process by which a lender seeks to recover the balance of a loan from a borrower who has stopped making payments.
Right of Action
The legal right to sue or pursue litigation in order to enforce or defend a right or claim.
Equity of Redemption
The right of a mortgagor to redeem their property once the debt secured by the mortgage is fully paid.
- Appreciate the actions and resultant situations of mortgage insolvency, involving foreclosure and the accessible remedies for mortgage debtors.
Verified Answer
OB
Learning Objectives
- Appreciate the actions and resultant situations of mortgage insolvency, involving foreclosure and the accessible remedies for mortgage debtors.