Escrow & Title
A Connecticut foreclosure by strict foreclosure results in which of the following if the borrower redeems?
ATitle remains in the lender permanently
BThe borrower retains title upon paying the full debt amount and costs by the law day✓ Correct
CThe property is auctioned to third parties
DThe borrower loses all equity
Explanation
If the mortgagor pays the full debt and costs by the court-set law day in a strict foreclosure, they retain title to the property. Redemption before the law day preserves the owner's equity and title.
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Key Terms to Know
Chain of Title
The sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Math Concepts
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