Many mortgage companies have included in their mortgage contracts the right to non-judicial foreclosure, meaning that...

50.1K

Verified Solution

Question

Accounting

Many mortgage companies have included in their mortgagecontracts the right to non-judicial foreclosure, meaning that if amortgagee becomes delinquent under the terms of the note, themortgage company can foreclose on the property without having tosue the mortgagee and obtain a judgment for judicial foreclosure.Do you think this nonjudicial foreclosure provision is fair? Is itgood for the economy/business? Should it be allowed? Why or whynot? Please remember to comment upon at least two other students'posts in addition to posting your own comment.

Answer & Explanation Solved by verified expert

4.4 Ratings (774 Votes)

Solution Meaning Foreclosure is a legal process where a creditor ie a lender or mortgage holder can repossess or sell property for the purpose of repaying the debt owed on that property Yes If lender fails to bid fair market value for home at foreclosure sale borrower can use this as a defense against the deficiency judgment claim Yes but amount that may be recovered is limited Not allowed for non judicial foreclosures if the property is residential and owneroccupied Foreclosure acts on the economy in a See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member